People invest lakhs & crores into real estate (RE) & patiently hold on to it for decades, eventually making multiple times returns.
The same people invest few lakhs into stocks & sells them at the first signs of trouble. You see the problem?
The real estate (RE) prices aren’t available on the screen & don’t get refreshed every microseconds unlike stocks prices.
Also, price changes perception into stock market.
If hypothetically let’s say the RE price drops, everyone would run to ‘buy’ a piece of it.
If stock price drops, everyone runs to ‘sell’ first. What kind of clown world do we live in? Shouldn’t you be a buyer if stocks are down & cheaper?
You see, it’s not the stock prices but your behavior around them that will decide whether you’ll make money or not.
RE investors make money because they hold their investments for 10-20-30 years.
How many equity investors you personally know, including yourself, who have owned stocks for 10-20-30 years? You can barely even count on your finger tips.
I rest my case.
Everyone wants to make ‘quick money’, by buying shares at 9:15 & selling them by 3:30, BTSTs, etc.
To conclude, everyone can become a mature investor by buying shares when they are down rather than panic selling, hold on to them patiently, increasing their time frames into equity investing and eventually make money.
