Rather than waiting for another correction and missing out by staying on the sidelines investors should follow a staggered approach to investing as well as consider every dip as opportunity to buy.
Despite being a successful entrepreneur with massive revenue streams, Bill Gates realized early in life about the power of equity investments to multiply wealth at an unparalleled rate.
Just like spotting a single cockroach means there are many more cockroaches around, the cockroach theory in investing states that when a company reveals bad news to the public, many more related, adverse events may be revealed in the future.
The stock market is not an easy way to create wealth. There will be ups and downs. Investors should be psychologically prepared to remain invested and have the patience to bear the temporary losses for long term gains.
The world post-Covid 19 will be a lot different. Those companies which make our lives better will be the best outperformers over the next few years. As an investor, you should focus on investing in those equity investment opportunities that can ride out the next wave of transformation.
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