3 Reasons Why Investors Fail!!
REASON #1 They don’t READ enough
All the top investors are avid readers. Take Warren Buffet, Rakesh Jhunjhunwala, Rajiv Khanna, Ramesh Damani – Reading is an Essential Habit for all of them.
As an Investor you need to Read lot of annual reports, company news, then only you will get the Confidence to invest & invest more. Remember putting Rs. 10000 on a 100X multibagger won’t make you rich. You need to put real money like Lakhs and then the 100X will make you Crorepathi!
REASON #2 They don’t BUY enough
As an Investor you need to sail through the tough times of market. If you are aiming at 100X returns then you should be ready to BUY MORE during price crashes of 50% levels. Most of the investors sell their holdings in a bear market crash. Later when the market rebounds these guys will realize the lost opportunity!
If you entered a stock for 500% returns with a Vision of 5 Years Holding – then why you are bothered about Returns in 1 Year? FD gives 50% returns in 5 years – Stocks gives 500% returns but you need to check after 5 Years!!
50% FD RETURNS vs 500% STOCK RETURNS!
During 2019 we recommended Caplin Point at Rs. 400 – it then crashed to Rs. 200 in Mar 2020 – but we were holding the stock & bought more too – today the price hit Rs. 800 in Aug 2021 where the initial investment returned 100% & the subsequent investment returned 300%!!
This is power of buying more!
Remember, stock price crashing is opportunity – Warren Buffet’s potato theory – You bought potato yesterday for Rs. 100 now the price is Rs. 50 – why you are not buying more?
REASON #3 They don’t PLAN enough
During a market crash you should be having Reserve Cash which is used to buy the undervalued growth stocks. These bear bottom investments are going to give multifold returns.
PLAN FOR IT – Your aim is 500% Returns in 5 years which if you repeat is 2500% Returns in 10 Years!
Keep a Reserve Cash of 30% levels so that you can absorb the crashes keeping the long term plan intact.
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