Superpower in Investing Or shall we say Power of Super Investing ??

Over the past three decades of being an investor and an investment counsellor, i have had the good fortune of seeing some really amazing investors make fortunes with their investing technique, while i was also witness to people who acted recklessly and lost their moneys.

One of the power i have come to believe is a Super power in investing is the ability to shut out the noise that happens constantly when it comes to stock markets.The noise is good for speculators and short term punters as they can be called as they are looking at short term trades to make small gains. However when it comes to large profits and outsized returns, i believe you will have to have a monk like calm when there is a storm in the Stock markets. The success in investing comes from understanding three important factors :

What is my timeline/goal post with which i am investing ? If my timeline is 10 years +, then any amount of volatility today in my equity / equity mutual fund portfolio is quite insignificant and inconsequential for me to be worried. On the contrary, i should be looking at it as an opportunity to add to my portfolio should i have some surplus that is yet to be invested ;

What is my Conviction in my holding ? If one has done enough homework in accessing the needs , identified the appropriate investment option after careful screening of alternatives, unless any fundamentals has changed, it is important to stay invested. When it comes to Equity investments , your belief /trust in the portfolio will help you weather the storm of volatility while you stay deeply entrenched ;

Is there enough liquidity for my short term needs ? As long as one has enough liquidity for short term needs which are not linked to stock markets, then one need not worry about adverse events as they will only help you get better value from your portfolio ;

Following the above three simple rules while investing esp into Equity/ Equity Mutual Funds, will hold you in good stead esp in times when the markets are going through huge upheavals and one is confused whether they must stay invested or pull out the money.

If 10 years hence you want to wealthy, it is important you ride the storm, because stock markets will be volatile. As they say to get to the rose flower, you must pass through thorns.

So remember that long term success is nothing but conquering your short term fears.

So the Super Power in Investing is Staying Invested when the market gets Choppy.