Marriage is considered to be one of the most sacrosanct alliances, and the reasons are palpable. It is a testimony to love and companionship. The nuptial bond is tagged with stability, personal growth, and security. Couples who are tied in wedlock are statistically proven to be together for a longer time. But there are far more advantages of marriage! Marriage upskills you to face life challenges in a better way by imbibing the qualities of patience, dedication, and discipline. Each vow of marriage talks about nurturing the sacred thread and sheltering it from anything that is detrimental.
Most of us follow this pledge by continuously watering the union with a lot of warmth, dedication, and fidelity. While marriage is a sign of personal growth, our investments shape our financial growth. Shouldn’t we then foster it with the same amount of zeal, assiduity, and tenderness? How can we accomplish that? Simple – follow the seven vows of marriage, and you’ll be able to sail smoothly in challenging and volatile markets to reach tomorrow’s goals.
Cherish and nurture
It is very uncomplicated to stay calm and patient when the bulls take charge in the markets. However, when the bears dominate the markets, is human behaviour the same? Long-term investing is extremely rewarding; however, it needs to be cherished with periodic monitoring, patience, and perseverance. The line “Om eshaekapadibhavaitiprathaman” teaches us to take charge of your investments by donning the role of long-term investors, and not a trader.
Safeguarding is must
If you trust your partner, will you give an ear to what everyone around you has to say about your spouse? The answer is obviously no. Similarly, say you know a stock’s growth potential is promising; however, your broker friend gives you a tip to sell the stock. The end result? You start mulling over the future of a stock. Now, can you decipher what is happening here? External noise is abysmally diverting you from your path towards financial abundance. Media news, rumours, hearsay, free research reports, etc. play spoilsport when it comes to your long-term investments. Be it any season in the market, it is your duty to protect your investments from this background noise.
Everything else is secondary
Your spouse is called your “better half” for a reason. After the marriage, they are your utmost priority. Similarly, when it comes to your financial life, research should be given utmost priority. Everything else, such as what brokers tell you, what your colleague advises you, etc., should take a backseat. The quality of research defines the quality of your investments. If exhaustive due diligence is conducted before getting started, you’re already a half-winner!
We try to sort out the differences with our partner by introspecting and communicating with them. The same trick applies to your investments. Few investments may turn out to be fruitful, while few may give you terrors. It is important to understand the reason behind the losses by introspecting what went wrong. This will help you become proficient in the investing game over a period of time.
No scope for assumptions
All the dilemma and confusion regarding your spouse can be clarified by healthy conversations. Marriages don’t work on assumptions – the foundation for any blissful married life is transparency. Similarly, there may be few days when you are contemplating the downfall in a stock’s price. You may be tempted to sell the quality stock to curb your losses, but never hit the red button without understanding the reason behind the fall. It is important to keep your investments away from emotional biases and reckon only on the empirical evidence.
Just like routine squabbles are a part of any married life, so are market corrections in the stock market. However, the biggest mistake we do is to sell quality stocks as soon as we see a depreciation of 2-3 percent in market price. This is not a long-term commitment. Just like healthy arguments help you know your partner in a better way, market corrections act as a bedrock to accumulate all-weather companies with significant margin-of-safety at a lower price.
Perhaps the most important vow – you need to give time to your relationship to make it strong and sturdy to survive all seasons. Similarly, you need to believe in ‘time in the market’ to see your quality investments transform from a bonsai into a gigantic tree. Remember, you’re not investing in a stock but in a business. If the business is durable with strong moats guarded by crocodiles and ramparts, you definitely do not need to worry about the transient hiccups in the stock market.
Remember, these vows are not only an expression of commitment but also the promises to your long-term investments. Under the aegis of a financial coach, trudging up the ladder of wealth creation can become painless and hassle-free.
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