‘My friend invested into an XYZ stock and, he doubled his money in a month’s time’.
‘My brother-in-law bought this fantastic property and, it’s just tripled in a year’s time’.
‘My colleague leveraged his little cash holding and tried his hand out at derivatives investing and, he just quadrupled his money on the advice of his broker’.
You see, doubling / tripling and quadrupling of money is so easy and light on one’s head. Yet, so many find it difficult to generate a consistent double digit long term return.
Where is this disconnect?
Is it in the claims made or are they really making so much return?
This is because…
we think in pockets
we see in pockets
we hear in pockets
we execute in pockets
we remember in pockets.
we are damn lucky in pockets 🙂
In retrospect everyone is a ‘Genius Investor’.
In prospect, ‘everyone has a view but none has a clue’.
All the tonnes of material written on investing is mostly useless to read and execute, if one doesn’t understand the basics of managing his or her personal finances. Everyone knows this and many understand this philosophy too, but, most are also blind to accepting this reality.
A holistic view of ‘personal financial thought’ is completely missing from most peoples lives. It’s always viewed in small pockets of successes or failures. So, is this disconnect. Unless the real macro view of personal finances is clear, the micro executions always look macro. That’s the sad state.
The way to go – Clarity on macro matters and, focus on micro matters.
Oh Yes! I did find the formula for identifying the next investment / stock which is going to double, triple or quadruple in probably the fastest possible time frame.
Invest
Wait
Over a time period, we’ll definitely know what has doubled, tripled or quadrupled ?