You Can’t Be Right Every Time

In Equity Investing, weather through Mutual Funds or Direct Equity it is much harder to time the market as a whole as well as a momentum of particular stock or sectors every time. 

Almost 90% of Equity Investors (both equity mutual funds & direct equity) think that it’s easy to time the momentum as well as the cycle and the best they can do is enter at the bottom and exit at peak.

This strategy works for many and they spread their successful experiences to many more people around them which makes them think it’s very easy to do.

The misconception is that this strategy doesn’t work successfully for long term or regularly for next 10 years. It works only for short term or once in 2-3 years. 

Bragging about such short term success cannot lead to long term compounding and wealth creation. In long term – the reality is simplicity, slow and steady actually wins. 

Once Jeff Bezos, Founder of Amazon met The Billionaire Investor Warren Buffett and asked, “Warren, Your investment strategy is so simple why doesn’t everyone just copy you?” to which Warren replied, “Because, nobody wants to get rich slow.“

Legendary investors knows this and they shares every idea that they follow themselves, but rarely people follow them. That’s why majority is not able to compound like them. 

Remember, Compounding at 12% for 10 Years is far better than compounding at 25% for 3 Years and waiting to time again for next 5 years, in between if any unsuccessful timing hit you then your returns will be far lower or maybe negative. 

So, why working around all the time in trying to be best? There are simple ways to just ride the momentum with adequate inflows. If you follow this you will do far better than 90% of investors. I know simple strategies doesn’t excite you but also remember every excitement have a cost that you pay unknowingly.