Simple = Difficult

Amar Pandit , CFA , CFP

The headline of this Nano could come across as ironic but nonetheless it is so true that it almost seems like a formula.

Don’t believe me yet. You will by the end of this Nano.

Some of the most important things that we must do every day are in fact so Simple. Yet many of us find it Difficult to implement them consistently.

  1. Eating Healthy Food
  2. Exercising Every Day
  3. Avoiding Sugar or Reducing Intake of Sugar
  4. Sleep on Time and Sleep for 8 Hours
  5. Do our Best Work
  6. Stay Invested (everyday) and Let Compounding do its work
  7. Investing when you have the money

The 6th and 7th ones directly relate to Investing.

Like eating healthy, exercising, and avoiding sugar; staying invested is super difficult.

Think about it.

Staying Invested is Super Difficult.

There is so much noise (aka bullshit) around us that it becomes difficult to simply stay invested and let compounding do its job.

The Villains or Kryptonites (for the Superhuman fans)

a. What is New (Naya Kya Kya?)?

b. Markets are High: Let us Book Profits

c. Markets are High: Let us wait for a correction

d. Markets are Low but they are going lower: Let us wait (aptly demonstrated in recent times in Feb – March 2020).

e. Sensational Headlines and Gloom Doom Prasads (Read: The Prasads of the 21st Century)

As always, I would love to hear your thoughts.

 

P.S. I have written this before but thought of writing it again. Stock Market corrections are normal, and they happen all the time. In any year, it is reasonable to expect a 10-15% correction, a 30% correction in 3-5 years and a more than 50% in 7-10 years. However, the declines are temporary, and the markets resume their upward movement before anyone can even realize. As I have written, the best days in the markets are during the worst times and many miss the best days (as well as a certain part of the up move after the market returns to its previous levels) simply because they could not fasten their seat belts and stay invested.