28 Apr Crow story
Remember the crow who dropped pebbles for water to come up.Flow based market appreciation is similar to pebbles being dropped in the water.The NAV like the water will rise but not due to growth in profits.This isn”t real growth.
When water rises due to more water being added then it is like NAV rising because profits are increasing.A speculator thrives on flow based appreciation while an investor thrives on profit based appreciation.Flow of investments can be sudden leading to sudden increase of NAV but profit increase takes time and contributes to NAV slowly over years.Hope you now understand why one has to invest for the long term.
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