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Welcome, welcome to the family financial freedom channel. The main intent of this channel is to educate Indian families who are new to stock market about some best practices from our investors, learned and accomplished investors. Welcome to the new series of pearls of wisdom from investment gurus. We read books.
Why? Because the authors out of their lifetime experiences summarize that in those books. So when we are reading them, we are collecting their knowledge in 100 pages maybe in couple of days or a week depending on how we read them. Similarly our investment gurus like Warren Buffett, Charlie Mer or Graham etc.
when they have given those small pearls of wisdom we can read understand internalize so that we don't do the similar mistakes and we learn from their experience. So this series is to bring you small but valuable quotations or sayings from them so that we can learn from them and apply in our investment journey.
So why delay can we start? Welcome to pearls of wisdom from investment guru series. Today we are going to talk about a saying from Peter Lynch. He says you can lose money very fast in 2 months but you very rarely make money very fast in this stock market. When I look back my great stocks took a long time to work out and give me good profits.
He means fast losses test your emotions, slow gains reward your patience. So we need to be patient in stock market to get substantial wealth. Here Peter Lynch is highlighting a simple but a powerful truth about the stock market and investment process. Losses happen very fast. Gains take time. I remember it may be cliche to say but stocks fall in elevators or lifts so fast it comes down.
While it is going up they go on stays or steps slow and steady. Right? Markets can crash very quickly due to you know uh fear or panic due to multiple reasons. Right? geopolitical tensions like currently we are in or um government policies etc or any bad news right but great companies which are having fundamentally good qualities they will grow slowly and steadily what he's really teaching is don't expect quick returns in stock markets if we are trying to double our money in 2 months or 3 months right we are not investing we are speculating So we have to get out of that speculative mind in investment.
Time is our biggest alley, biggest friend. The more time you are getting, you are staying invested in a quality company, the more probability that you will make wealth out of it. Okay? And patience beats the activity due to um this volatility. Don't be panic and you know exit and re-enter exit and reenter kind of stuff.
So if you are exiting out of that quality companies you may also lose the opportunity to compound with that company. Many times due to human psychology if you are exiting at a lower price tomorrow it comes up right our mental block will be will not let us to invest at that higher price. Correct? So um that's the reason he says just be invested stay for long term that only will give you enough riches.
So let me close with this you know um the statement of fast losses test your emotions correct. Uh similarly slow gains reward if you are patient enough. So even um don't take it as an investment you know advice and all I'm not se registered this is just for learning. If you guys are invested in companies like demart right um it it corrected something and again it is growing slowly and steadily.
So is MTAR technologies we discussed earlier. Similarly recent another company is the Loris labs. It was kind of going up and and you know weighted weighted there since its fundamentals are good. Now again it is in the going up zone. So good quality companies always reward our patients but ensure those are fundamentally sound quality picks.
Thank you once again for subscribing to family financial freedom. Hope this helps in your investment journey. If you resonate with this Peter Lynch's philosophy, please say your uh experience in the comments. If you have not subscribed, please subscribe and encourage this channel. Thank you and we'll see you in our next episode.
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