Many investors are really good with passive investing. Strong mutual funds inflow suggests the same.
The problem starts in active investing amongst them. Their behavior.
There may be multiple gainers & even multibaggers in their portfolio. But that 1 stock which is 20% down would seem like a piece of hot coal hurting their hands.
This behavior is the chink in the armor of investors.
Almost everyone feels the pain 20x for holding a 20% down stock. This mindset needs to be worked on to stay in the stock market game for long run.
Profits & losses are part & parcel of the game.
Even Warren Buffett & other legendary investors had their fair share of losses in many stocks. Who do you think you are?
Overall if your portfolio is profitable, you shouldn’t worry about losses in a stock or two.
