just look around during the last crisis, some of the singapore richest men's net worth fell more than half. but we don't see any fire sale of their businesses during those scary times.
agreed that a person whose net worth 500m half that will still be a very high 250m. fractionally speaking, it's the same as someone 100k becoming 50k. But losing 250m net worth is much more than the lay person losing 50k.
then why is it that almost all the richest do not bail out and yet its those smaller investors that do?
and we know that bailing out at the height of the crisis would make all the difference.
One reason is that they own the company and this could be painstakingly built up by themselves or by their forefathers. Throwing in the towel is the last thing on their mind. And time and again, a lot of them are proven right and most businesses become stronger after each crisis.
But shouldn't investing be the same way? Is it not owning part of the businesses as well?
perhaps we could do better having the same mindset of the towkays of the businesses we invest in, apart from just analysing reports.
agreed that a person whose net worth 500m half that will still be a very high 250m. fractionally speaking, it's the same as someone 100k becoming 50k. But losing 250m net worth is much more than the lay person losing 50k.
then why is it that almost all the richest do not bail out and yet its those smaller investors that do?
and we know that bailing out at the height of the crisis would make all the difference.
One reason is that they own the company and this could be painstakingly built up by themselves or by their forefathers. Throwing in the towel is the last thing on their mind. And time and again, a lot of them are proven right and most businesses become stronger after each crisis.
But shouldn't investing be the same way? Is it not owning part of the businesses as well?
perhaps we could do better having the same mindset of the towkays of the businesses we invest in, apart from just analysing reports.
Paul, Thanks for this write-up and it will be very true if ever there is any upcoming crisis. Investing long term is more like fighting an internal war with our own sentiments. It is so true when its said " We are our own greatest enemy "
ReplyDeleteThanks Gary.
Deletewhat u have said is also equally true.
cheers!