Investment Philosophy: Adapting, Discovering, and Persisting for Success
November 5, 2023
1. Investment as a Process of Learning and Adapting:
Investment is fundamentally about understanding the mechanisms of making and losing money in the market, which is often unpredictable. The ability to make money (profit effect) and the experience of losing money (loss effect) are the most genuine reactions of the market. Investors must be flexible in their approach, adapting to the ever-changing market and evolving their strategies over time.
2. Investment as a Journey of Self-Discovery:
The essence of investment is a process of self-discovery, aligning with one's personal goals, values, and lifestyle choices. It involves finding one's place in life and selecting an investment style that suits one's personal journey. The core principle is to engage in investment activities that resonate with one's life perspectives and aspirations.
3. Parallels Between Investing and Doing Business:
Investing shares similarities with running a business, where the aim is to find a profitable venture while adhering to legal and ethical standards. Both involve risks and the potential for both profits and losses. Persistence in investing, even through phases of losses, can lead to significant gains in the future. The philosophy of "accumulating steadily and bursting forth" suggests that consistent effort in investment can lead to substantial rewards and possibly a breakthrough in one's financial status.
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