To convert even 25 lakhs into 2 cores, let alone 4 crores, in 7 years, you will also need loads of luck. Someone, for whom 25 lakhs are pocket change, can take a lot of risk with that capital without losing sleep. For someone, whose life saving is 25 lakhs, risk management is only sensible strategy.
It’s easy to get emboldened by the stories of investors turning their 1 cores in 50 crores in 5 years, but one needs to watch out for survivorship bias. For every single such case there would be hundreds of adventurous but bankrupt investors that newspapers or YouTube won’t talk about.
Risk management is the only strategy that works in all context. Protect your capital at any cost and you will make good money in the long run. And while you are doing that manage both greed and fear, the biggest enemies of returns.
To quote Warren Buffett, “The first rule of an investment is don’t lose your money. And the second rule of an investment is don’t forget the first rule.”
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