Value Investing And Behavioral Finance: Insights Into Indian Stock Market Realities by Parag Parikh

ONE 1

SUCCESS AND FAILURE

1.1 Why People Fail
1.2 Characteristics of Human Nature
1.3 We Strive For
1.4 Unwillingness to Delay Gratification
1.5 Success
1.6 Conclusion

1.1 WHY PEOPLE FAIL
Why people fail? This was the subject of an interesting talk by Brian
Tracy, one of the best motivational speakers. I would like to share with
you his understanding of human nature, which sets the basis for this
book, blending value investing and behavioral finance.
Why is it that so many people fail in life? There is so much more
information available today on how to be successful than ever before.
Self-improvement books are amongst the best sellers in bookstores,
millions have read them but the vast majority of people live their lives
far below their potential, achieving far less than their capacities permit.
Failure is as predictable as success because it is the strength of character,
which separates the winner from the loser.
Economists say that the inability to delay gratification is the primary
reason for economic failure in life. People fail because in life they do
what is fun and easy rather than
what is hard and necessary. They
do what is tension-relieving rather
than goal-achieving.
Success and failure are more the
results of habit. Ninety percent of
what we do is dictated by habits.
We eat the same food, work in the same way, associate with the same
people, and act the same way when things happen to us over and over.
When a habit is formed, we become comfortable with it, and then we
strive to remain consistent with what is familiar, even if our habits are
leading to failure.
We are always striving to be consistent with what we have done and
said in the past. Thus, we resist change of any kind. Psychologists call
this tendency to become comfortable as getting into the comfort zone.
Even if this comfort zone is keeping us at a low level of performance, we
prefer to stay in it rather than change.
Sow a thought and you reap an act, sow an act and you reap a habit,
sow a habit and you reap a character, sow a character and you reap a
destiny. All changes in our life starts with changing our thoughts and
actions so that we form habits that sow the seeds of our success and
make those habits our masters.

Value Investing And Behavioral Finance: Insights Into Indian Stock Market Realities by Parag Parikh