Vision – Identifying OpportunitiesTo spot potentially lucrative stocks, you need the vision to foresee where the world is heading 20 years from now. What products or services in their early stages could become commonplace elements of lifestyle down the road?Courage – Taking Calculated RisksMany investors opt for only minimal-risk investments out of fear of losing money. But have you considered the potential upside being missed by not taking risks? As economist Robert Kiyosaki wisely put it: “The biggest risk a person can take is to do nothing.”Here’s a comparison – over 20 years, Sensex has provided around 15% annualized returns. Rs 1 lakh invested back then in an index fund would have grown to Rs 16-18 lakh. But the same amount in a 7% fixed deposit gets you only around Rs 4 lakh. Three-fourths of the created wealth is lost due to not taking enough risk!As Kiyosaki says, “It is the investor who is risky, not the investment.” Don’t blame the asset if your strategy and conviction falter.Patience – Holding Through VolatilityEven after investing, many are quick to hit the panic button when fears arise – be it geopolitics, financial data, or even a single quarterly earnings dip. However smart investors analyze long-term impact rationally before taking such drastic steps.Take the COVID crash – within months, the Sensex eroded 50-90% across stocks. But it recovered fully in barely 8 months in a V-shaped rebound. Those who sold at the bottom lost fortunes, while long-term investors multiplied wealth as markets scaled new highs.The lesson? Even the worst black swan event in a century couldn’t keep the markets down for long. Maintain conviction during bouts of volatility to reap rewards.In closing, the ability to identify long-term potential, the courage to purchase despite uncertainty, and the composure to hold through stock cycles are the keys. Stay invested across market phases – that’s the simplest path to building wealth over decades.
