3 Minute Read

Too busy to read? Listen to the article on-the-go instead!

 There was a poor couple and the husband told his wife, “I am going in search of work in a far away town. I don’t know how long I’ll be away and won’t be in touch. Please don’t worry about me and wait for my return.” The man walked many days till he reached a big city and found work. He told the employer, “Let me work till I go home. Please save my salary with you and give me all my earnings when I leave for home.” He was a hard worker and never took leave. After working 20 years, he told his employer, “I want to go home now. Can I have my wages?” The employer said, “I have an offer for you. I give you all your money or give you 3 pieces of advice for your life but without the money. The choice is yours.” The man thought hard and selected the 3 pieces of advice vs money.” The 3 pieces of advice were: 1. Never take shortcuts in life. Shorter or unknown paths can be costly. 2. Never be too curious when not necessary. 3. Never make decisions in moments of anger or pain. When you repent it could be too late. The employer handed him 3 loaves of bread and said, “Two are for you during your journey and the last one you should eat with your wife.” When his wife broke the bread, they found it contained gold coins, much more than his wages of 20 years. He knew that his employer had tested his loyalty.

The 3 pieces of advice are the golden rules one should follow in life and in investing. 1. Never take shortcuts and time the market to make a quick buck. 2. If you are a long-term investor, never get too curious about market noise as it could distract you from staying invested. 3. Never take decisions in high emotions of euphoria, anger or fear. Let the moment pass. Remember, you can only win when your mind is stronger than your emotions.