Now, think about it:
▶ How often do you drive at 200 km/hr on highways?
▶ Do you really need to drive that fast?
▶ And if you do, how long can you sustain that speed on Indian roads without increasing the risk of an accident?
Most of us know that driving at a 𝐬𝐭𝐞𝐚𝐝𝐲 𝐬𝐩𝐞𝐞𝐝 𝐨𝐟 60-80 𝐤𝐦/𝐡𝐫 gets us to our destination safely and comfortably. It’s not flashy, but it’s reliable — and you can enjoy the journey without the constant fear of crashes.
𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐖𝐨𝐫𝐤𝐬 𝐭𝐡𝐞 𝐒𝐚𝐦𝐞 𝐖𝐚𝐲
Many investors chase 30-40% annual returns, believing that higher returns will get them to their financial goals faster. But let’s be honest:
▶ Achieving such high returns is rare and unsustainable.
▶ Even if you do hit those returns briefly, there’s a high probability of “accidents” in your financial journey — like losing capital or derailing long-term goals.
For most investors, achieving average returns (around 12-15%) over the long term is not only enough to fulfill financial goals but also a much safer and more peaceful path.
𝐓𝐡𝐞 𝐩𝐫𝐨𝐛𝐥𝐞𝐦? Many investors 𝐝𝐨𝐧’𝐭 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐚𝐜𝐜𝐞𝐩𝐭 “𝐚𝐯𝐞𝐫𝐚𝐠𝐞” 𝐫𝐞𝐭𝐮𝐫𝐧𝐬. But consistent average returns over time can beat occasional bursts of high performance. In a previous post, I discussed this using the concept:
15% 𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐭𝐥𝐲 > 𝐀𝐝-𝐡𝐨𝐜 30%. (𝘐’𝘷𝘦 𝘭𝘪𝘯𝘬𝘦𝘥 𝘵𝘩𝘢𝘵 𝘱𝘰𝘴𝘵 𝘪𝘯 𝘵𝘩𝘦 𝘤𝘰𝘮𝘮𝘦𝘯𝘵𝘴 𝘧𝘰𝘳 𝘵𝘩𝘰𝘴𝘦 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵𝘦𝘥)
𝐀 𝐒𝐢𝐦𝐩𝐥𝐞 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧
Have you ever tried taking your car to 200-240 km/hr❓
If so, do you think it’s worth the risk❓
Now, apply the same logic to investing. Are you comfortable accepting steady average returns instead of chasing risky highs?
Because, 𝐣𝐮𝐬𝐭 𝐥𝐢𝐤𝐞 𝐝𝐫𝐢𝐯𝐢𝐧𝐠, 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐢𝐬 𝐚𝐛𝐨𝐮𝐭 𝐫𝐞𝐚𝐜𝐡𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐝𝐞𝐬𝐭𝐢𝐧𝐚𝐭𝐢𝐨𝐧 𝐬𝐚𝐟𝐞𝐥𝐲, not speeding towards accidents. 🚗📈