How lack of patience cost my client the opportunity to multiply his wealth by six times

For an investor, being patient is not easy. A challenging task, the #investor must master the art of managing his emotions well to make the right decisions especially, when money is at stake.

1. Let’s me explain to you the Importance of Patience in Wealth Creation with a case study of my client.

   • In October 2021, when the equity market was performing exceptionally well, I stumbled upon Rail Vikas Nigam Ltd (RVNL), a government-backed Indian public Ltd company trading at 33. RVNL specializes in implementing different rail infrastructure projects.
   • After conducting in-depth analysis, I believed RVNL had the potential to touch the triple- digit figure. As it was backed by the Indian government, I suggested this opportunity to one of my clients.
   • For the next two days the stock was trading at upper circuit with RVNL reaching at 44. My client was happy, he asked me,
   • Client: The 35% gain in just two days is remarkable, should I sell my shares?

   At this point I asked him a crucial question.

   • Me: Are you looking for short-term gains or building Long-term wealth? If, creating long-term wealth is your goal, I would recommend you keep the shares and view RVNL as a ‘wealth-building machine’. Future gains will be rewarding and satisfying. Being patient and persistent will yield valuable results for sure.

   As per my advice, the client agreed to hold on to the stock for long-term, but he lacked patience.

   • Soon, the stocks witnessed a decline as short-term traders booked their profits, settling the prices between 36-38. These prices remained stagnant for 6-8 months.
   • Impatience got the best of him, and he grew frustrated. Despite my efforts, he sold his stocks to seek better opportunities. That’s when RVNL stock prices took off!
2. Today RVNL is trading at 165 with a high of 199 this year. Thanks to the G20 summit, RVNL has bagged the opportunity of constructing a new rail line extending to Gulf and Europe.
3. Moral of the story is very clear:

   Patience is of paramount importance if, you have invested in good stocks. Trust your investment and trading strategy. Maintaining patience is a pre-requisite to successful investment.

PS. Had my client stayed patient and held on to the stocks a bit longer, he would have multiplied his wealth six times in a span of 2 years.

Your wealth-building journey starts with patience and the right strategy.