"Prosperity brings expanded lending, which leads to unwise lending, which produces large losses, which makes lenders stop lending, which ends prosperity, and on and on. Look around the next time there’s a crisis; you’ll probably find a lender."
- Howard Marks
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Another example of misleading headlines is that investors lost Rs.6 lakh crore on a correction day. Price fluctuation is not loss unless someone panic sell.
Facebook Meta market value dropped ~$240 bn (18 lakh crores) in a day. That is more than the total value of India’s largest company. It highlights the fragility and fickleness of our times. Welcome to the never normal world!
Stock Market (in addition to money) teaches you a lot of things:
1. It teaches you to analyse businesses like a Management Consultant.
2. It teaches you to predict the next move, like a Poker Player.
3. And sometimes, it teaches you to pray like a priest.
In initial phase of investing, better to lose than gain. Else it creates an impression making money is very easy. Nothing can be more dangerous than this thought.