If you recall, from childhood you are told that your behaviour can impact the course of your life and determine whether you are successful or not. Interestingly, your behaviour can have a similar impact on your investment journey as well and determine whether or not you achieve your financial goals. Further, while you can always get a job and earn money, it is the way you save and invest that will determine how that money will grow and for how long you can keep that money.
Morgan Housel, in his book, ‘The Psychology of Money’ beautifully explains how your behaviour and experiences can have a large impact on the investment choices you make and on how your investment journey finally shapes up.
Key takeaways:
· In the world of investing, how you behave is more important than how smart you are.
· It is not enough just to know how to do something. Execution is the key.
· Greed can become a big problem since in your attempt to earn more returns you might end up taking more risk than you can afford.
· Creating wealth is easy, but keeping it is very difficult.
· The only way you can save and grow your wealth is by investing in a steady and consistent manner and taking investment decisions that are free of bias.
Housel’s book tells you how you can easily maintain your wealth just by managing your behaviour. You can listen to the podcast on the Edelweiss Mutual Fund website, Spotify, Google Podcasts, and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets.