30 years of Survey of Investor Psychology – The results are surprisingly same.

 

28^th May 2021

30 years of Survey of Investor Psychology – The results are surprisingly same.

Dear Fellow Travelers,

Namaste! I have always observed that it is difficult to find a person who is not interested in making more money. When everybody wants money – how come so many are struggling to make money or struggling to meet their basic needs? How come some people have to depend on Government aides or donations? This is a really important PARADOX to solve if you want to go ahead in your life and investments.

Let us see how people FOCUS when they approach their life and investments?

Early in my life, I have been taught – wherever I focus – that area will GROW.

If I focus on Money, Money will grow.

If I focus on Relationships – Relationships will grow.

If I focus on Health – Health will improve

If I focus on FEAR – Fear will grow.

If I focus on Happiness – Happiness will grow.

If I focus on Short Cut solutions – problems will grow in the long run.

So, your focus is the KEY to your current situations in your life.

To check the focus, I decided to check the priorities of the people. Whatever is their priority in their life, they will focus on them by default. Simple.

So, I keep on asking people to put number 1, 2, and 3 on following priorities for their life.

 

To be WEALTHY

To have LUXURIES

To be Comfortable

 

In the last 30 years of my questioning to people of all walks of life – 90% plus guys have given the following numberings.

 

1.   To be Comfortable

2.   To have LUXURIES

3.   To be WEALTHY

 

As you can see above the most guys have given number one  – to Comfortable life, Second to LUXURY and third to be WEALTHY. Their thinking is if they are comfortable – they will try for LUXURY and if by a stroke of luck they become WEALTHY they have no issues. Many see them as stages of their life - First being COMFORTABLE and last being WEALTHY.

 

Since comfort is the TOP priority, COMPROMISE is the best solutions in their life.

1.   Many have a very BAD MARRIED life – still, they continue to have a comfortable life.

2.   Many have very bad conditions in the job – still, they continue to have a comfortable life.

3.   Many have very bad experiences in their life in various areas – just to continue what they are doing – they compromise a lot.

The beauty of COMPROMISE is that it keeps you hooked to what you are doing but you curse your luck, you curse the people who cause you problems but you don’t go for the solutions or out-of-the-box thinking. This kind of people when they die – they die with a lot of – I SHOULD HAVE DONE THIS AND DONE THAT – kind of inner thoughts.

At any moment if you feel – I SHOULD HAVE DONE – in any areas – I can tell you for sure – you are UNHAPPY NOW in those areas. We have divided our life into CAREER / FAMILY / INVESTING etc. But life is a whole package. So, when you are compromising in one area – you are compromising your Life. Whole your life becomes UNHAPPY due to compromise in one area.

Biggest Misconception about HAPPINESS: -

The reason for COMPROMISE in life is – the misleading belief that in the future things will be alright and we live happily ever after.

My observation is simple – If I am not happy in this moment – the next moment is can never be happy.

About 2-3 years back – MEDIA was full with the METOO campaign. Many women had come out to complain about the sexual crime done to them in the past. They had compromised at that time. They may have become successful after that. But when they are complaining now – they have a hidden pain today also. In short – they are not HAPPY NOW.

If your goal is to become COMFORTABLE – you will end up paying a very high price in terms of HAPPINESS in LIFE.

How does this apply to Investing?

When share prices or portfolio value goes down – I have often go following reactions from COMFORT-seeking guys.

1.   Had I invested in BANK FDs – I would have got capital plus some interest. (those shares or portfolio where value had gone down)

2.   I am happy that my capital is intact. (where after 1 or more years of holding share prices or portfolio values are same).

3.   I should not have sold A share to buy B share. (this is where a person has sold one asset class to buy another asset class or sold one company to buy another company).

4.   My portfolio is underperforming compared to MARKET return or some other people’s performance.

This kind of thought comes because while investing the person was not doing what he LOVED. He was not AWARE of what he is doing. On 26^th May – we wrote about CLOSED EYE investing. You can read that post to have a detailed understanding of AWARENESS.

What is a WAY OUT?

You need JOSH / JUNNON / MADNESS / TONS OF PASSION / COURAGE to go for your DREAMS / GOALS and PRIORITIES.

In the moments of JOSH / JUNOON / MADNESS – you live your life in totality. When you live your life in totality – you feel happiness from within by default.

Very few are OUTLIERS as far as the above qualities are concerned. So, very few are happy or wealthy.

Make your CHOICE now or listen to your inner dialogue – I SHOULD HAVE DONE.

The SECRET of MANY LIVES: -

We have a system of BIRTH after BIRTH till a person reaches MOKHSA or NIRVANA. You are given the next birth because you don’t live your current life in totality. Look at all the enlightened people’s life – they lived their life with so much totality that they got MOHSHA or PUR HAPPINESS in this life only.

If you want FINANCIAL NIRVANA – give your totality to investing. If you need help in Investing with awareness and totality, you can approach us.

Have a Fantastic Friday.

Follow me on Twitter @hiteshmparikh /WhatsApp - +91-9869425399.

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.