There are a lot of movies that don’t only inspire you but also sometimes give you an important investment lesson. One of the films that are filled with important life lessons is”Forrest Gump”. We think you can learn there some great investment lesson too from simple gazillionaire Forrest Gump.
There is one famous quote that provides timeless investment lessons:
“Life is like a box of chocolates. You never know what you’re gonna get”
Investing is the same way. Equity market are cyclical and nobody can tell you with certainty when it will fall or rise. It has never happened that it ran in a smooth straight line, and it will always be like this only. Some years it will go up dramatically and some years it will struggle. You cannot control the 2008 Credit Crisis, dot com bubbles, housing bubbles, or the price of oil.
However, your reactions to these crises define if you’re a successful Investor or not. When Market falls, investors rush to discontinue their investment and think that they will restart it if the market stabilizes at a specific level. However, remember, discipline and consistency with your investments what makes investors successful.
The legendary Investor, Mr. Warren Buffett, is the perfect example of this. All the wealth he generated after his 52nd birthday, and he was able to make this massive wealth because he never paid any attention to short term under-performance, and took any irrational investment decision. He invested for the very long term and that thing paid off well in the long run.
Thus, the moral of the story is to stop worrying about things which you have no control over, even if it is about the market recession or short term under performance, and always align your investments with financial goals.