The middle class mentality of booking profits immediately once a stock becomes a 2x won’t make you ultra rich.
To become ultra rich you need to hold on to stocks until they become 10x, 50x, 100x.
Once I buy a stock which I know is a potential multibagger, I’ll hold on it with all my heart.
For eg: I bought ITC at 160 & 200s & I think it’ll go to 1400. I won’t buldge even if it consolidates here in 400s for a while. Meanwhile, I know many investors who write to me that they booked profits in ITC at 250, 300 & 400 and regret booking out the profits early.
When you know the potential of a business, it doesn’t makes sense to book profits out early.
Have patience. Let you winners ride high.
People do the opposite. They cut the winners early & let the losers continue their losing march and wonder why they are not making money in stock market.
It takes courage to hold on to your winning stocks because you don’t want whatever profits you made by holding so far, to go away in a stock market correction. Patience will help you build courage & vice versa.
Especially when it’s bull market, it’s tempting to book profits every day when you see stocks keep on rising. Though, that’s a losing strategy if you’re a long term investor. As an investor, you want to hold on to the last leg of bull run to make the maximum possible money.
Show me a person’s patience & courage and I’ll tell you how wealthy he is going to be.
