Lemmings are small rodents and not fish as some wrongly assume. Lemmings term is used when a crowd blindly follows something which it does not know. Just because some one is running on a fear or rumour, it also runs.
Investments are also something like Lemming. People flock to that particular investment just because returns are higher and the fear of FOMO is there and just flock to it. This can have negative effect and investment should not be on the basis of Lemmings.
To generate wealth over long term, requires steady, constant investment that grows 10-15 or even 20% beating the inflation. It's not like a dip into the sea when tide is low and come out when tide is high. It may work once or twice, but invariably people get caught in high tide and when low tide comes they are left without any clothes.
There are many examples in the last few years like the Real Estate, Sectors like Chemicals, Pharma, Banks, FMCG where people have put in investments at PE of as high as 50 and above and suddenly get disheartened when the stock crashes. This creates a negative mindset on investment and poor returns over long term.
Many people when they see some investors (over a long term) has made money in stock market, think that is the best place to invest and jump into it, losing a lot of wealth. People should realize that wealth is created over a long period of time layer by layer and not a quick dip.
Earn-Keep aside for investment-Spend should be the mantra for youngsters just about tipping their toes in the field of investment. This will help in generating long term wealth. As nations people become rich, investments will generate more companies to innovate and bring products creating a market and this cycle goes on.
Begin early investment to have a wealthy portfolio at the end of the twilight years.
