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Completely true on the part of uncertainty and temperament . Even the very best run companies in the best businesses do falter from time to time. Switching in and out is akin to speculating or gambling. There is good money to be made from speculating/trading as well but that is not investment. Investment is like growing a tree. Trading is about finding trees to chop down.
Most people do have the ability to pick the right companies to invest in, the difference is patience and the ability to stomach uncertainty or even increase stakes during times of short term shocks. It takes time for a company to execute its strategies, it takes time for its balance sheet to grow,.... As the world moves faster. many investors expect results quickly, 1-2 years of under performance and they are out.
It is unlike working 9-5 where you will get paid and is a win, all the time. In investing or starting a business, it is different from working 9-5 job, losses are inevitable. In fact there is higher chance of losing from starting a business now than investing in a reputable company. I.e. you cant start a Mercedes dealership and expect to compete well against C&C, similarly you cant start a supermarket and expect to be on par with NTUC/Sheng Shiong even with ample funds.
Just to share, I dabbled in Face Mask and other items during the covid period. I spent a few K SGD on this micro project. There is some advantage in my case as I could use existing sourcing/logistics/distribution channel that are already in place so it is not a lot of effort. Also face mask are not technical and is easy. So it turned out that everyone is doing the same and doing it more aggressively. In the end prices started dropping drastically and i probably lost money on it but it is what it is. At that point of time, it was quite critical to have it, even if there is no surge in demand, the masks would be needed in the place I was working anyway. So even with some advantage on my end, money is lost. This is a small lesson learnt, never dabble into easy, common items. The harder it is to do, the better and usually more successful.
Most people do have the ability to pick the right companies to invest in, the difference is patience and the ability to stomach uncertainty or even increase stakes during times of short term shocks. It takes time for a company to execute its strategies, it takes time for its balance sheet to grow,.... As the world moves faster. many investors expect results quickly, 1-2 years of under performance and they are out.
It is unlike working 9-5 where you will get paid and is a win, all the time. In investing or starting a business, it is different from working 9-5 job, losses are inevitable. In fact there is higher chance of losing from starting a business now than investing in a reputable company. I.e. you cant start a Mercedes dealership and expect to compete well against C&C, similarly you cant start a supermarket and expect to be on par with NTUC/Sheng Shiong even with ample funds.
Just to share, I dabbled in Face Mask and other items during the covid period. I spent a few K SGD on this micro project. There is some advantage in my case as I could use existing sourcing/logistics/distribution channel that are already in place so it is not a lot of effort. Also face mask are not technical and is easy. So it turned out that everyone is doing the same and doing it more aggressively. In the end prices started dropping drastically and i probably lost money on it but it is what it is. At that point of time, it was quite critical to have it, even if there is no surge in demand, the masks would be needed in the place I was working anyway. So even with some advantage on my end, money is lost. This is a small lesson learnt, never dabble into easy, common items. The harder it is to do, the better and usually more successful.