The Journey is as Important as the Destination

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

 

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