There are various tools that you can use to master the art of successful investing in stock markets. There are books to read, courses to take and many skills to develop. Sometimes just being a keen observer of things around provides useful insights into the art of investing. One of them is Mother Nature and a beautiful, majestic and powerful beast that she has created – The Lion.
How the lion’s behaviour can be extrapolated for developing good habits while investing in stock markets?
Lie low most of the time
Lions spend more than 2/3rd of the day sleeping or lazing around. They don’t waste their energy trying to find prey all the time or doing stuff that’s unnecessary. This is very important for investors. You don’t need to be buying/selling stocks all the time. Use the majority of your time researching your potential buy/sell and don’t waste your time listening to market chatter (rumours, tips, hearsays).
Associate yourself with good (stock) hunters like Research & Ranking
Lions work in groups to hunt larger prey. They are capable of taking down smaller prey like zebra, deer, etc. all by themselves. But for larger prey like the giraffe, they rely on teamwork. Likewise, in the world of investing, it is better to talk to people, experts to build an understanding of the businesses you wish to own. Small, occasional gains can be made by relying on your own desktop research. But if you want to catch a huge opportunity before it’s ripe, teamwork is the way for you! If you need an excellent team to partner you in your research, look no further than Research and Ranking.
They don’t get it right all the time…well, they don’t need to
Despite the lion’s size and strength, they don’t catch their prey all the time. In fact, lions catch their prey only 20-30% of the times they hunt, but that suffices them for their nutrition. This is because though they’re not the fastest hunters; they wait for the right time to pounce upon their prey. Investors cannot be right all the time with their stock picking. In this age of instant information dissemination through social media, they cannot be the fastest either. So in your portfolio of stocks, it is considered good if 1/3rd of your stocks do exceptionally well, giving very high returns, 1/3rd of them manage to just about beat the market and rest either under-perform or just scrape through.
Hunt, when no one is expecting.
Lions usually hunt from dusk to dawn. That’s when it’s quieter and when the rest of the noise is cut off. Also, that’s when their prey is most unsuspecting. As an investor, that’s what you need to do to get your stocks at the right prices – buy good quality businesses when everyone else isn’t buying and then stay put!!
If you’re too lazy to hunt, rely on expert lionesses to do the job for you.
This one’s the best for all the lazy ones out there! Lions don’t hunt most of the times. Lionesses do it for them. In fact, 90% of the hunting is done by lionesses. Lions rely on their expert counterparts to feed them. If you, as an investor, feel that you lack the expertise to do all the research needed to build a power-packed portfolio or you need a helping hand with the same, leave it to us. Given our team of research analysts and expert stock pickers, fundamental analysis is what we breathe.
So let us worry about your portfolio building and portfolio management, let us be your lioness, and we’ll build a portfolio that’ll send your returns roaring! Click here to get started with your investment now.
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Read more: How Long-term investing helps create life-changing wealth – TOI.