The key to success on the stock market is doing less

May 31, 2020

Before buying shares in any company and investing in the stock market, it is extremely critical to understand things.

Not your typical market

The stock market is completely different from a normal market, where buyers and sellers meet up to conduct trade. These trades happen in a manner which is mutually beneficial and results in synergy.

The stock market, however, doesn’t operate the same way. New investors, should never lose sight of this fact. 

In the world of investment, buying and selling shares happens in a melting pot. A chunk of people who do it have incredibly high IQs and some have average IQs. 

What they both have in common is, they’re all trying to out-think each other. This is why the market behaves erratically. Often a result of overthinking. 

Sometimes all you need for a good cup of tea is a tea bag and hot water.

Business and investment schools are teaching the younger generation about ways to get an advantage over the competition. Consequently, you come across extremely hard-working individuals who put in the time and hours required to understand market and business trends.

Doing less means you don’t follow the herd

What ends up happening though, is that the system, like an assembly line, produces ‘drone investors’, the new age version of alchemists who want to turn lead into gold. 

With the advent of the information age, being calm, rational and objective on something simple like the stock market is getting harder and harder.

Why only a few people successfully invest and grow wealth?

The key to being successful on the stock market is to do less. 

This is why I have never been a trader. 

I believe in doing less and removing the complications out of decisions. 

If I do not understand the business model and am not comfortable with the risk, I don’t take any part in it.

Doing less is not panicking

Truly successful investors do not have the fear of missing out. They don’t panic and attempt to jump a train to nowhere because everyone is getting on it. 

They know there are plenty of opportunities out there and if you’re someone who diligently invests over time (I invest every month for example), you are bound to come across some real gems.

At tabarruk, we’ve been successful over a long periods of time because we know every company we own shares in, like the backs of our hands. Because we know that opportunities are important and the more crowded a cafe, the harder it is to find a seat at a table.

We don’t try to overthink and take it upon ourselves to conduct in-depth research. If we don’t have the time to research, we find multiple reliable sources of research and analyse the work already done to form insights.

Tabarruk set out to be one of the best resources of ethical investment education on the ASX sharemarket, and has achieved it through:

  • 75 combined years of experience between Moin, myself and our fathers
  • Our combined experience across sectors in Australia
  • The refining of the Tabarruk framework for analysing, researching and rating companies

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