Why High Net worth Investors Makes Great Money in Market? – We have found their secret source.

October 8, 2014

Why High Net worth Investors Makes Great Money in Market? – We have found their secret source.  

Greetings from Hitesh! I thank you all for being regular reader of my blog and many thanks for your compliments. I have observed that while small investor may or may not earn good money – high net worth guys always end up winner. They can convert their temporary losses into big profit in short period of time. I went deep into the matter and here is my finding.

Not Now v/s Why Not Now?

These two sentences are the most important difference according to me. If you share any opportunity to Normal Guy – he may say – Not Now / I will let you know / I need to talk to my spouse / I do not have money / Let me think, etc., etc. In short, he will give you reasons WHY HE CAN NOT TAKE ADVANTAGE OF THIS OPPORUNITY?

Give the same opportunity to High Net worth guy and say we will do it tomorrow – he will ask – Why not Now?/ How come you took so much time to share this interesting opportunity? / I will arrange money / I will convince my spouse but you do it now/ I want to make the best of this opportunity.

Future v/s Present:-

Normal guy always lives in Future. They are always hopeful for tomorrow. Sweet dreams of tomorrow make them happy. HNIs talk about today. They talk about NOW. They make money in present and not in future.

Warren Buffett always focuses on the current price and current intrinsic value of the shares. If the price is lower than the value….they will buy. Simple!!

Eg. If he finds that ABC has fair value of Rs.100 and market price Rs.50, he will invest. He made 100% here and now. That’s why Mr.Buffett can say – “I am perfectly okay if market is closed for 10 years after my purchase!!” (Most seasoned guys find it difficult to understand and practice this logic).

HNIs Focus is on PRESENT. They want their Dreams, Desire, Goals, Optimism, Hope, Targets to be achieved here and now. Not in future. They know that they may not be there in FUTURE. So they enjoy the PRESENT.

Hope V/s. Hopelessness:-

When a normal guy comes to the market with a hope to earn money – he will think positive about market/ shares and the investment scenario. When he thinks positive – he will miss the major risk associated with it. He has list of the things, he will do it with the money he makes…..in short, he is 100% hopeful.

When HNI goes to market – he has big sum to invest. He thinks what will happen if I lose this money? He is not hopeful of profit but hopeless for profit. His focus is on all possible reasons which can harm his net worth.  

Just to give you the perspective – normal guy gets married and goes for divorce, in case he or she is not happy. HNI does divorce first (known as pre-nuptial agreement) and then he marries!!

What Next?

I really like this statement from Bible - Matthew 13:12 – “Whoever has will be given more, and they will have an abundance. Whoever does not have, even what they have will be taken from them.”

Do you see rich are getting richer and poor are getting poorer? Can we put the equation for poor and rich?

Poor = Not Now + hope / Rich = Why Not Now + Hopelessness.

My Personal Call:-

If you are NOT NOW type – you will still wait. But if you want to go to WHY NOT NOW?, do contact me NOW!!

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Live With Passion…Invest With Passion.

Hitesh Parikh.