Self stock buying fallacy (short courses) VS Serious Investing in great companies portfolios (Fund managers vast experience

1) Stock picking by individuals is highly random with limited analysis.
Don’t buy and sell on the basis of past pattern, every high-low has a new story and many factors.

2) Less turbulence , less stomach churn, less anxiety.

Great companies portfolio’s (Mutual Funds) value doesn’t move up and down drastically due to binding of 50- 60 companies.
Stocks can appreciate fast but it can depreciate as fast too.

3) Behavioral observation –
When someone is making money quickly, it is impossible not to become greedy.

When someone is losing money quickly, it is impossible not to become fearful.

It is proven that both greed and fear are bad for your investments.

4) Fact-
It doesn’t mean we compromise on returns… stock also have losers with winners. And if you sincerely calculate your net returns, it would be far lower than the mutual funds.

5) Lesson –
We can’t be smarter than the qualified professional fund managers.

Wishing you financial success and personal happiness.

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