@AlliesFin
*Direction vs.Speed*
Is the fastest mode of transport to your destination always the best? In our view not necessarily. Say, you are flying from Chennai to Delhi. On the normal path there is some weather turbulence and your pilot decides to take a detour on account of safety and comfort considerations. Due to this, you reach your destination 30 minutes later than the scheduled time. Some other pilot of another airline decides not to take a detour and reaches safely and on time but with a lot of scary moments for the passengers. Is the second pilot better?
Say one is driving from Mumbai to Pune. The speed limit on the expressway is 80 kmph. One cab driver honours the speed limit and reaches the destination in proper time. Another driver drives at 150 kmph and reaches early without an accident. Is the second driver better?
Many a times in our day to day lives, we choose a slower path on account of various reasons. Many people choose cruise ships or road trips or train journeys vs. air travel to enjoy the journey rather than just reach some place. Again for a long haul, air travel may be the best route.
T.me/AlliesFin
Investments are just the same. What matters is an enjoyable journey (less volatility), safe journey (avoid permanent loss of capital), the right destination (does the investment help you meet your financial goals) and reasonable speed (returns). Focussing only on one parameter of returns is not the optimal course.
By: via @AlliesFin Serve T.ME/ALLiESFiN
