Consistent Investors V/s. Inconsistent Investors – What is your category?

16^th April 2025

Consistent Investors V/s. Inconsistent Investors – What is your category? 

Dear Investors,

Namaste! Today we are dealing with a topic on investments. From the time you go back into history – consistency is appreciated and inconsistency is hated. If you look at the MORALS and ETHICS of the society – they like the consistency in whatever we are doing. 

Let us look at some of the sentences which praise consistency.

• "Consistency is the key to achieving and maintaining momentum."
• "Success is the sum of small efforts, repeated day-in and day-out."
• "Consistency breeds familiarity, familiarity breeds confidence, and confidence breeds sales."
• "Consistency is the true foundation of trust."
• "Consistency is the foundation of virtue."
• "Consistency builds momentum and strengthens habits."
• "Without commitment you'll never start, but most importantly without consistency you'll never finish."
• "Small disciplines repeated with consistency every day lead to great achievements."
• "A consistent soul believes in destiny, a capricious one in chance."
• "Consistency is contrary to nature, contrary to life."
• "Consistency is the true foundation of trust."

I am sure many of the above sentences would have been read by you all. All normal people grow with the above kind of advice into their subconscious mind for years. So, whether one is consistent or not – he will surely be aware about the so called benefits of consistency. 

How do the top guys take advantage of this mental lacuna of normal people? 

They will tell you to invest regularly in SIP / SAVING SCHEMES. Investing is the best thing you can do after earning money. Investing wisely will allow you to spend money while you are not earning or retired. 

However, the biggest issue with consistency is that you are investing some amount every month without worrying about the PRICE!! Those who are doing RUPEE COST AVERAGING – they may not know that the investment price decides investment return and not the selling price. 

Those who started the concept of Mutual Funds would have realised that they need regular fund flow to manage their business efficiently. So, they came out with the concept of SIP. This gives them the fund every month or periodically as per the terms of the funds. Moreover, they can take Rs.100 per month also( some funds are offered)!! Now, Rs.100 can be given by anybody. When lakhs of people give Rs.100 – they have a big kitty. 

Since the MASSES were already brainwashed to be consistent their job of selling SIP became easy. 

Those who are not doing SIP - may be investing some amount every month on their own. They also buy at the prevailing price every month. This is also not a good practice. 

All BIG investors are INCONSISTENT: - 

While big investors are CONSISTENT in looking for the opportunity / upgrading their investment skill sets and technology / doing their own research – they are not consistent when it comes to investing. 

BUFFETT was sitting in a record breaking cash of USD 334 billion, the largest cash piling in the history so far. 

 

He is waiting patiently for the RIGHT opportunities for the last 3 years while his money is earning him just 5% or so in BOND interest. 

BIG money can be made only and only when you invest BIG AMOUNT at the RIGHT TIME. 

In Feb end and March first week we asked to buy when the market was at lower this year. We booked good profit before the TRUMP announcements and bought in the last week while the market was down. ( to our clients). 

What could be the better way for FAST WEALTH CREATION? 

If you are a very small investor - go on investing in Recurring Bank Deposit your small amount or make FD every month for 6-12 months. The money will earn some interest to start with but you will have good funds to play with over a period of 12-24 months. In the meantime – if you get a good opportunity at the bargain price in the market – invest your money. 

I can assure you one thing – you will end up making BIG MONEY at a faster speed then your CONSISTENT investing practices. 

Of course, you will need a superior investing skill or consultant having those skills. 

So called expert will advise  – don’t waste time in developing superior investing skill sets and save on fees to the consultants – instead enjoy your time with family and let the fund managers do the best for you. You may like this advice for sure. 

When everybody does the same thing – the return gets divided and average investors end up getting a paltry return of 12% or so in their funds. In the current year – the most SIP investors would be in loss in their SIP thanks to market movement since last October. Ideally, if they followed our way – they might have had good funds now to invest in the lower levels. 

Another observation of the above investors is that they feel zealous of RAKESH and BUFFETT kind of investors. They say – they made money because they were LUCKY. 

I would say – they may have had luck but they played their privilege with a lot of smartness/ hardcore investing skills and common-sense. I have seen RAKESH losing crores and coming up again and again. He took too much pain to earn the money he had earned. 

Buffett was often criticised for sitting in the cash in the past also. But he has always been proved right. This time also – see he has funds and the market is down!!

Waiting for the RIGHT OPPORTUNITY is the KEY to make tons of money. If you average out your investments – your returns will also average out!! 

Anthony Robbins taught me – In the moment of your DECISION – your DESTINY is SHAPED. So, be extra alert while you 

take your investment decision next time. 

If you need help in investing your hard earned money – contact us. 

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

Learn a Lesson. Live with Passion & Invest with Reason.

Hitesh Parikh.