Every now & then, investors join & leave the stock markets.
It’s the ones who STAY that makes money.
Patience & tolerance are rarest of rare quality.
Too many people are troubled with their personal life that they become too emotional too handle the volatility of stock market.
It’s kind of an irony that people troubled with personal lives come to stock market to better their lives. The market volatility & lack of direction makes their lives even more miserable.
To counter this irony or paradox as some may say, it’s always better to cut drama from your life.
Investors who are unemotional, calm & peaceful & avoid drama tend to do well. We have countless examples to prove this.
Buffet & Munger who have survived markets for >80 years recommend living a stress free life.
Tension & unwarranted worries lead to disease & make ones life short. Unfortunately, some say that’s what happened to Mr. Junjhunwala.
While Buffet took lesser risk unleveraged trades & calculated risks; Junjhunwala was known for some of the riskiest leverage trades.
Both had different psychology as well as investing criterias & both made money accordingly.
One should always focus on keeping things simple.
Low stress, staying calm in tough situations & cutting sources of emotional outburst are things that increases longevity of one’s life. And with longevity, returns are bound to come thanks to compounding.
First you need to survive. You’ll thrive once you survive.
