By Piyush Patel | Profit From It
“An investment in knowledge pays the best interest.” – Benjamin Franklin
Over the past 15+ years of mentoring thousands of investors—from students to CEOs—I’ve observed one thing clearly:
It’s not just what you buy, it’s how you think.
This blog is my heartfelt message to all investors. Whether you're just starting or managing crores, these are 10 timeless lessons I wish I had learned earlier—and I want you to master them now.
“The best time to invest was yesterday. The next best time is today.”
📊 Data Insight:
Nifty 50 has delivered 10.9% CAGR over the last 20 years, but investors who exited during short-term corrections underperformed significantly.
📌 Mini Story:
Rahul, a 29-year-old software engineer, kept waiting for a “market crash” to start investing. Five years later, the Nifty had moved from 11,000 to 19,500—his SIP calculator still untouched.
✅ Action: Start now. Use SIPs to reduce timing anxiety.
“Compound interest is the 8th wonder of the world.” – Einstein
🔍 Example:
₹1 lakh invested at 12% CAGR becomes:
₹3.1 lakh in 10 years
₹9.6 lakh in 20 years
₹30 lakh+ in 30 years
📌 Investor Reflection:
Most people overestimate what they can do in 1 year and underestimate what they can do in 10.
✅ Action: Stop interrupting compounding. Give time, not tension.
“If you don’t understand it, don’t buy it.” – Warren Buffett
📌 Short Story:
A client once asked me, “Is Vedanta good to buy?” I asked, “What does it do?” He replied, “Stock gives good dividend.” That’s not investing. That’s gambling with a dividend disguise.
✅ Action: Read the annual report. At least the business model and revenue breakup.
“There’s no great investor without scars.”
📊 Reality Check:
Even Rakesh Jhunjhunwala saw his Titan stock fall by 30% multiple times before it became a ₹10,000+ crore bet.
✅ Action: Don’t panic in corrections—evaluate, don’t evacuate.
“An average strategy with discipline beats a great strategy with emotion.”
📌 Quote to Remember:
“Amateurs think about returns. Professionals think about risk first.”
✅ Action: Define your investment framework: Growth, Value, or Quality? Don’t mix moods with methods.
“Fear and greed drive more trades than logic ever will.”
📊 Behavioral Data:
DALBAR studies show that average investors earn 3–4% lower returns than the funds they invest in—because of emotional exits.
✅ Action: Create rules for entry, holding, and exit. Automate wherever possible.
“Opportunities are missed because they come dressed in overalls and look like work.”
📌 Example:
Infosys IPO (1993): Raised ₹13 crore
Titan in 2000s: Labelled as a “watch company”
IEX in 2017: Seen as a complex platform
✅ Action: Study sectors. Look beyond the price. Focus on scalability and moat.
“News makes noise. Reports reveal patterns.”
📌 Quick Fact:
99% of news headlines won’t matter in 3 months.
But a single concall or investor presentation can shape your 3-year portfolio strategy.
✅ Action: Replace 30 minutes of news scroll with 1 annual report per week.
“Don’t put all your eggs in one momentum trade.”
📊 Data-Driven Truth:
Dalbar and Morningstar show that diversified portfolios outperform concentrated bets over time with lower volatility.
✅ Action: Maintain a balanced allocation between Equity, Debt, and Emergency Funds. Review quarterly.
“Becoming rich is a skill. Staying rich is discipline.” – Morgan Housel
📌 True Story:
An investor with a ₹50 lakh portfolio once asked me for a shortcut to ₹5 crore. I told him, “The shortcut is consistency, not speed.”
✅ Action: Track your net worth, not just stock prices. Build long-term habits, not short-term thrills.
Create your 10-year vision plan.
Automate monthly investments & reviews.
Read 1 company report every weekend.
Attend at least 1 learning event every quarter.
Measure success by growth in wisdom, not just wealth.
“Guru Purnima reminds us: the real guru is experience, reflection, and self-discipline.”
I share these 10 lessons not just as an investor—but as a student of the market who has been humbled, challenged, and shaped by every up and down.
May you build not just returns, but a resilient financial character.
—
Piyush Patel
Founder, Profit From It
💹 Investor | Mentor | Author – “The Stock Market Way”
🔗 Learn more: https://www.profitfromit.co.in
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