An average human brain makes almost 35,000 remotely conscious decisions per day. Phew! That is a lot, isn’t it? No wonder we feel so exhausted by the end of a workday. This decision fatigue comes from a principle introduced by a 14th century philosopher named William of Ockham which roughly translates to “The simplest way is usually the best way” as he knew that people have enough to deal with on a daily basis.
Investors too, are overwhelmed with decisions. How does one track the markets, understand chart patterns, do quality research, find hidden gems, while also focusing on their day job, family and having some semblance of a social life? Seems impossible, doesn’t it?
In an era where information is freely available, but knowledge is scarce, investors need to “declutter” from all the noise around them and truly focus on their long-term goal. A few ways in which this can be done is by:
– Ignoring short term price movements of the market
– Consolidating your demat accounts and portfolios
– Avoiding investing in companies with complex business models
– Avoiding investing in products you don’t understand
– Avoiding get-rich-quick schemes which promise “guaranteed” returns
– Avoid checking your demat accounts multiple times a day
“If you can’t explain it simply, you don’t know it well enough”-Albert Einstein
Therefore, at KRIIS, we truly believe in simplicity of investment. Our philosophy is to find businesses with sustainable long-term growth potential which generate wealth for all our clients. It’s simple – if we don’t understand how a company makes money, we would never risk your hard-earned money into it.