Investing, long term, means we are participating in a business and are not just buying shares, and as such, the focus in on the business. There have been many threads in VP where in some members have followed the businesses and stayed invested in thick and thin for years and years. Not that this approach is suitable for all, even affordable by all, but long term in essence is that. Invest in a business, follow the business until it stops performing, not that we will be rewarded always, but that is a chance we take, and we may build the position slowly or at once.
And as we do this, we get to know and experience a lot of things, learning wise, capital wise, return wise, allocation wise, loss wise, opportunity cost wise etc etc, and the next investment hopefully will be a better bet.
So, what I think is that, this is a journey, if we want it to be.
There are many investors, who apply the same principles for a shorter time period, who have understanding of the overall macro and micro picture, do top down approach, and participate in the theme, or in the company, for 2-3 years, and as these are knowledgeable and experienced investors, they will be ready with their next idea, and continue their journey.
Then there are investors who stay in the stocks for mere months, their churn is big, they may not necessarily lack patience, but it is their style, they may make a quick 30% in less than a year, and as they too think of it as investing and know the business, they invest more, and as such a 30% return in 1 year is very good.
We have all kinds of members in VP, it has helped me to know about their styles, it gave me a perspective.
And having these many ways to invest is for good. We can pick whichever suits our situation, capital, return expectation, risk affordability etc and do it. I think market is essence is this, participants with different perspectives, different holding periods, different return expectations etc.
While I do acknowledge, read, learn and appreciate the vast market teachings by all the great investors and traders, real time experience is more nuanced, like Mahabharata, the market is so vast, and the learning is so different, it cannot be explained by one investor or trader.
Have some basis, have some ground, start laying bricks, go forward, give it some time, destroy everything if found fault, or build more as it is fruitful, and as time progresses, see it takes a shape, see how it grows, and if there is a smile on the face both in terms of learning and return, I guess we have made it.
Just some random thoughts, hope there is coherence.
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