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D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Rip Van Winkles

Posted by Muthu on October 12, 2014

Technology has enabled us to know the value of our financial assets on a daily basis, wherever we are. We don’t do it for the house we live in or even for other real estate investments. We don’t even know as to what is the value of the provident fund accumulated so far. When it comes to equity, we want to know the daily value.

Liquidity and transparency (every day NAV and real time share price) is the boon of equity.We make it a curse by checking the value frequently and reacting emotionally to the same.

Extend the habit of not checking the daily value of house, land etc. to equity investments as well. Would we not consider somebody insane if he wants to know the value of his house daily or even monthly? Somehow this insanity is an accepted way of life in equity market. People who check daily or frequently do not stay in the market for long.

Rip Van Winkles have higher success rate in the market. Sleep on your investments for next 20 years.

We do once a year review and advice you to stay the course, which is asking you to sleep well:-) This would be our advice for next 20 years:-)

Course correction, change in asset allocation etc; if and when necessary can be done. Most of the time it would be doing nothing.

People like me have occupational need (hazard) to know about markets and related news on a regular basis.

For investors like you, there are better ways of spending time instead of getting hooked to these gyrations.

I’ve shared a piece earlier citing how people who have fared well in their investments are those who forget about them.

You’ve invested right. You entrusted us to monitor the same.

So sleep well.

Be Rip Van Winkles.

One Response to “Rip Van Winkles”

  1. Nishanth Muralidhar said

    True.Liquidity ,which is a boon for investors , is transformed by themselves to be a curse. As Buffet tells, people who buy a farm or apartment can sit quietly for decades , but check their equity quotations daily

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