The Journey is as Important as the Destination
1) Your child has been hurt and is bleeding
2) You go to a doctor
3) He gives you Dettol and asks you to apply it on your child’s wounds
4) You do it and your child screams because of the burning sensation he experiences from Dettol
5) The Doctor says that it is okk. This burning will help to cure the wounds
6) But you can’t see your child cry so much and feel disgusted with the doctor even through what he says isn’t incorrect
7) So next time you don’t put Dettol even if it is good for healing the wounds
8) This situation is similar to when we ask people to have patience even if markets crash and wound the Portfolio
9) When the portfolio is injured, the best medicine is to do ‘nothing’ and wait patiently. This is like administering Dettol
10) But 9 out of 10 people are like the Parents who will not adminisiter Dettol because they can’t see their portfolio scream in pain
11) In the case of Parents, they will switch to Savlon because it does not burn like Dettol and their Child will not scream in Pain
12) They will happily apply Savlon even if it were less effective
13) Immediate Pain cannot be brushed under the carpet
14) Easy to talk about these things in theory and Excel sheets
15) In Reality human beings get influenced by the present conditions
16) Therefore in most cases we have seen that the investment makes great returns but investors don’t because they exit the investment every time their Portfolio bleeds
17) Therefore the only solution is to seek something like Savlon that does not hurt so much
18) Asset Allocation and Rebalancing is the Savlon for Investors
19) Use it to reduce the immediate pain; that makes the investor stay invested so that he is invested to see a better day in the future
20) As I always say all the three ; short term, medium term and long term are important and have to be handled with skill and dexterity of a coach
21) The Journey is as important as the Destination if not more
