Wealthcare Investments

Less is More!!

In the series of “Less is More” Today we will discuss “More Analysis”

Anyone can make analysis basis information, research and networking thru various sources!! Albeit person himself doesn’t know the credibility of the same😊  I am not disputing the logic and fairness of the opinion, research but I do dispute the relevance of the same on your behaviour and therefore portfolio returns 👍. It’s scientifically proven that your temperament is not even known to you, therefore you tend to get carried away with any opinion or analysis. Your lack of fundamental knowlwdge about market and personal goals makes the life even more confusing 😢.

Investors tends to feel confident with information at hand, no matter is it relevant or not!! That’s totally undesired behaviour. Investors always feel uncomfortable when he/she has credibility issue with his advisor.

Let me give you an example: If you go to a car mechanic and tell him about the problem and its solution too!! How is the workshop engineer going to react? He will certainly say “let me diagnose the issue and recommend the solution or else let me do as you suggested and I am not responsible if the issue persists😊. Similarly, if patient goes to doctor and says I have this sickness and I think ABC medicine be prescribed to me. Doctor will reply – if you already know the prescription, why are you visiting me?

Who are the people who reacts over analysis/ research and networking?

1)      New Investor in an asset class

2)      Oversmart Investor. Seeking to be ahead of market.

3)      Nervous investor

4)      Investor with unclear Goals/Objective

5)      Uneducated Investor. Not aware of risk-reward of underlying investment

6)      Low confident investor

7)      Investor who is not happy with his Agent/Advisor/Broker

If you spend some time on above factors, you will notice that unawareness is the key driver. If you are carrying one of the symptoms you must speak to your advisor to work on this!!

We believes that aware and educated investor is boon to his Investments, family, us and society at large. Aware and educated Investor would be quite peaceful with self and Investments also. Oversmart Investors seldom beat markets but patient investors do👍✔.  While our interaction with most of the clients we do discuss the pitfalls along with the opportunities i.e. Risk – Reward. By doing this, we not only build business relation but build trustworthy and long term relationship. We like it that way only. We may have lost some prospects but we are happy to let go of such clients.  

Jaise Siya- Ram, Radha- Krishna aur Din- Raat hai waise hi Risk aur Return hai. Risk ke bina Returns ki baat adhuri hai.

Let me also speak about the Goals today. Many HNIs tell me I do not have Goal. But they do have goals. A goal always need not be accomplishing a tangible milestone like- Marriage, House, Education or retirement etc. For HNIs who do not have to worry about aforesaid goals, target return is also a goal. Example – 8-9% p.a. return for his entire netowrth (MF, Property,FDs Gold, Bonds etc), lowest risk, stable returns, Philanthropy are the goals that HNIs must think of.

After having goals, the sight changes to goals and not the volatility or the threats👍. Over Analysis, research and networking takes back seat forever😊

Investor needs to realise that wealth that sets you free from uncertainity, agony, panic and tension is true wealth, rest is just money.

What should you do as Investor?

1)      Gain full knowledge of product that you wish to invest in

2)      If you cant gain knowlwdge, hire a good advisor who can share Risk and Return of Investment

3)      If you are new, dont jump, start with small amount and taste water

4)      Do not consider a product, just because some else has made money!! There could be many who have lost money but you don't know them 😊

5)      Avoid copying others. You are unique and your objective/goals, risk appetite and time frame is unique to you only. Above all, your temperament is different from others.

There is famous saying “More analysis leads to paralysis”. And as James Montier says “The amount of information that assails on a daily basis is truly staggering. Unfortunately, we tend to equate information with knowledge. Sadly the two are often very different beasts. We also tend to labour under misapprehension that more information is the same as better information. Experimental evidence suggests that often where information is concerned, LESS IS MORE”

If you need to know more about money wisdoms, feel free to contact me. I am available at 9833778887 or wealthcarein@gmail.com

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Author –

Bhavesh D Damania

Founder - Wealthcare Investments

EduPrenuer, TV show panellist and Blogger

You can reach him at 9833778887 and wealthcarein@gmail.com

"Risk comes until you know what, where and why you are Investing"

Disclaimer: We respect all individual approaches. Sole objective of this series is to burst a few myth in Investing. There could be genuine reason/experiences and “less is more” may not be appropriate. Investor must consult own advisor to figure out right approach before adopting any of these suggestions.