That successful investing is more a matter of a strong heart than a strong mind is something I have repeated innumerable times on Safal Niveshak.
Of course, succeeding as an investor requires a strong mind – the ability to study and identify the good and great businesses while avoiding the gruesome.
But what you need is a stronger heart so as to keep your emotions at bay and behaviour in check, especially when stocks plunge – or soar.
I met a friend yesterday who has multiplied his money 8x in Symphony Ltd. in less than four years. Prior to that, I met a relative few weeks back who has grown his money in Bajaj Finance 6x in less than 5 years.
Surprisingly, instead of being happy about their stupendous gains in these stocks, these people were suffering from a peculiar fear.
In fact, I must not term their fear as surprising or peculiar because this is the exact emotion I have gone through a few times in my own investing life.
Like when I was sitting on a 5x gain in Page Industries in January 2011 and 7x in KPIT Technologies in October 2013.