I'm not sure how many of my readers here are cricket fans but if you have watched any cricket at all, you may have heard the term 'percentage shot'. Conventionally, the way cricket used to be played, most batsmen would play only shots where as far as they knew, they were safe. If something unexpected happened, they could get out but that was never part of the plan. Nowadays, especially in limited-overs cricket, it's the time of percentage shots. The batter knows that there is a certain percentage risk of getting out and that risk is acceptable. Not doing anything and wasting a ball is itself a risk.
In equity investing, everything is a percentage shot. We like to fool ourselves, especially in hindsight, that something was a sure-shot investment but in reality, there is always a probability, with every single investment, that something can go wrong. In this sense, equity investing is essentially a percentage shot. There's always a chance of failure. Not just that, as you invest in a number of stocks and buy and sell over the years, there is a zero chance of not failing and actually a chance of failing often. Most investors who are choosing carefully would fail more than succeed.
But then what?
So, everyone fails; everyone makes mistakes. I do, you do, Warren Buffett and Charlie Munger do, too.
هذه القصة مأخوذة من طبعة December 2022 من Wealth Insight.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة December 2022 من Wealth Insight.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Bad ideas, F&O trading and the market
Find out the mindset required to find success in F&O trading
Licence Raj Redux?
The import policy changes might take us back to the days of License Raj
How to do magic
Getting great equity returns sustainably only looks like magic, it actually isn't
Data protection and cyber security
The increasing need for cyber security is opening up investment opportunities
"Buying is dependent on pricing but not on timing"
Insights of a fund manager at PPFAS Mutual Fund
Pro vs Amateur
Can amateur stock investors be better than pros? Yes! Here's how
The dimming of Brightcom
Shedding light on irregularities at the Brightcom Group
First tryst with profitability
Find out if food aggregators have found a cure to their loss-making curse
Have We Crossed The Peak Of Inflation?
Find out if the present macro scenario calls for tweaking your portfolio strategy
Tomatonomics
The humour, the stories and what could have been done about tomato inflation