In the last few weeks I have come across a few investors damaging their wealth by following “Tips & News” from various social platforms.
To some of them, I have written very sharply without mincing words.
Like the way you take “dosages” by the Doctors and “dates” by the Law Enforcement Officers seriously, you need to take “investment advice” by your Portfolio Manager very seriously.
These 7 basics are practicable ones.
1) If you have no patience to stay invested in Mutual Funds and Stocks, try lottery and gambling.
2) If you cannot hold an investment for 10 yrs, don’t think about holding it for 10 minutes.
3) If you are price conscious, watch Fashion TV not ET Now.
4) If you know the value and have a surplus to invest, but you do not understand value averaging, then the first two you really do not know well.
5) When the Funds & Stocks turn negative, instead of investing if you are planning to exit, you and the advisor are sure-shot failures.
6) Your Financial Goals are the foundation of wealth creation, do not replace it with emotional goals.
7) If you trust none, you are most likely to bring in more people with trust deficiency.
Rakesh Jhunjhunwala to Warren Buffett to Porinju, all suffered losses while creating wealth.
If you think that you are an aggressive investor, then you need to be careful. Because Economy, Taxation and Stock Market will cut you into size.
Stay humble, stay blessed.
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