Mr. Mediocre & Mr Successful started their investment journey into equity market way back in 2005. In their early couple of years of investment, market and their luck supported them both and got good profit from equity investments. Afterwards the tough time started.
Situation of Both In 2020
Both started equity investments 15 years back and both got signed a few times in equity market. Like most amateurs, they wanted to get rich quick. Instead they got broke quick.
Mr. Mediocre did not analyze his mistakes. He thought that in every bull run he had best of the stocks of that time. In spite of that he made losses. He reached completely false conclusion that equity investment suits only Lucky Guys. It is a form of gambling and sooner or later everyone loses. He joined the brigade who had made wrong investments and are now Anti-Equity. It was crowd there.
Mr. Successful analyzed his mistakes. Losses didn’t stop him. Instead, he regarded initial losses as his cost of education. He had confidence on the strengths of the economy. He knew, over the long run, equity gives excellent returns, provided he is with the winners of tomorrow in a well-planned manner. He kept on restructuring his investments supported by strong research and very good advice from his Advisor. He joined the brigade of very successful investors like Warrant Buffet. No crowd.