1) 80% of gains come in 20% of the time. So an investor needs enormous patience and conviction to hold stocks for 10 or 20 years.
2) Why not all investors get rich? They like to get rich without going through many years of discipline & patience. Process leads to the outcome.
3)Prices change frequently. Value change over a period of time. There lies the opportunity.
4) Compounding is backloaded. It works well only over a long period of time. There is no substitute for time in compounding.
5) 99% of the time, doing nothing is the best thing to do in the market.
6) You cannot predict or control markets. What you can control is how much you save, investment process and behavior. Focus only on that.
7)Markets usually run ahead or fall behind. Rarely in equilibrium. Over or under valuation can last for a long time. Don’t time the market.
8) Buying and selling are easy. It is holding on through ups and downs is difficult but ultimately most rewarding.
9) Invest regularly. Invest for the long term. You can create huge wealth.
10) Not investing in equity is riskier than investing in it. Remember, you need to beat inflation and retain your purchasing power.
11) We see past bear markets as missed opportunities. However, thinking of future bear markets is gut-wrenching. Strange investor psyche.
12) If someone keeps reviewing the value of his house every day, we may suspect his mental health. But that’s what we keep doing with our equity investments.
13) Equity investments are subject to behavior risks. Always keep a check on your emotions while investing.