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

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Nuggets for 20th January

Posted by Muthu on January 20, 2018

Some of my recent tweets:

1) When we buy quality, time creates wealth. When we buy junk, time destroys wealth. Time is useful in investing only when it is backed by quality.

2) Right behaviour ensures investor returns is equal to investment returns. Though this sounds very simple, it is rare and only few investors make it.

3) Don’t expect immediate gratification. Only when you accept delayed gratification, you become eligible for long term investing.

4) If we time the market, need to be correct at every entry and exit, repeatedly. We have no such ability. Believe that fortunes are made by buying right and holding on.

5) In investing, genius is one who has developed enormous patience and discipline.

6) Patience does not come easily. It needs tremendous discipline and practice. That’s why making money and retaining it is never easy.

7) My results have improved from the time I started focusing on buying right, sitting tight and be a reluctant seller.

8) Rewards for patience happen only over years not weeks or months. How much ever this is emphasised, only few would follow. Delayed gratification is not easy.

9) In hindsight, staying the course looks easy. As every tomorrow has always been uncertain, staying the course is most difficult but extremely rewarding.

10) Being rich is having only money. Being financially independent is having both time and money.

11) Investing is simple. It gets complicated only because of our behaviour. Behave well, all will be well.

12) There is nothing new in worrying about global factors, politics, interest rates and macros. People have always been worried about it and would continue to do so. Equities have done well despite real and imaginary problems and would continue to do so.

13) In long term investing, it is not effort that counts, it is patience.

14) In a country like India, we can make good wealth if we can start thinking in terms of decades as holding period. It doesn’t require a great brain but an excellent temperament.

15) No doubt that there are many roads to reach destination. But better to choose a good and less accident prone road.

16) You’re ready for long term investing only when you’re able to accept underperformance or even negative performance for few years at a stretch.

17) The biggest challenge for many is the initial capital. Living well below one’s means is generally a good habit, but must for beginners who want to get wealthy through investing.

18) If I’m not able to earn the returns I aspire for, I would not increase the risk. Instead I would reduce my expectations.

19) Without some amount of failure, difficult to get a grip on investing. It is better to fail early as you would still have time to catch up and it would also cost less.

20) Many of us would live long. If we can even do slightly better than average, it would be huge over a long period of time. No need to chase quick returns and end blowing up.

21) In every bull market, there are investors who chase fads and quick money. To paraphrase Buffett; each bull market teaches new investors some very old lessons.

22) Even a horrible investment strategy may work in bull markets. It is difficult to keep the money we make in the absence of a good investment strategy.

23) Patience, simplicity and prudence: old fashioned but much needed virtues for every long term investor.

24) Even mediocre returns would create good wealth over long term if we can avoid permanent loss of capital. We underestimate the importance of not blowing up.

25) Not that you should focus on beating others. However a right temperament would ensure that you outperform most of the investors.

4 Responses to “Nuggets for 20th January”

  1. Venkatesw Reddy Konda said

    Awesome quotes !!

  2. Abu said

    25 investment gems!

  3. […] 25 Nuggets of financial wisdom (Muthu) […]

  4. DR Abhaykumar Bora said

    nice and must for wealth creation thoughts

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