Laws of Wealth
Mar 2023
3 min read
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1. Emotions are the enemy of good investment decisions.
2. Making investment decisions will never be the reason you get out of bed in the morning but whatever does get you out of bed can certainly be at the forefront of how you make decisions.
3. Bucket (either physically or mentally) your assets relative to your deeply held ambitions and long-term financial goals.
4. Prepare your finances for famine in times of feast and feast in times of famine.
5. The fact that people are fallible is your biggest advantage in the accumulation of greater wealth. The fact that you are just as fallible is the biggest impediment to that very same goal.
6. If diversification is the “eat your vegetables” of investing, high conviction diversification adds a little spice.
7. This tendency to conflate price with quality may lead us to overpay for clothing, cars or coffee, but is overall fairly harmless in terms of our retail purchases. In investing, it is disastrous.
8. Forecasts don’t work and neither does investing based on forecasts.
9. Excesses of all kinds are never permanent.
10. Just as with wine and public speakers, the richer the valuations of the stock market, the better we think it will be. Unlike wine and speakers, there is actually an inverse relationship between price and performance in stocks – the more you pay, the less you get.
11. Shares in a company can never be thought of as cheap or expensive based upon price alone, without carefully considering the quality of the company.
12. Just as we assume that a kind friend today will be a kind friend one year from now, we also mistakenly suppose that today’s hot sector will grow unabated into the future.
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PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
Toll Free Number: 1800 266 7446
Email: care@pgimindia.co.in
This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
The information contained herein is provided by PGIM India Asset Management Private Limited (the AMC)
on the basis of publicly available information, internally developed data and other third-party
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assure its completeness, or warrant such information will not be changed. The information contained
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