Key 3: Think Equity — Owning a Piece of a Business
By Investment Team5 Keys of Investing
Equity is not just a ticker symbol — it is ownership in a real business. Understanding this mindset shift is essential for long-term investing.
Equity Is Ownership
When you buy a share, you own a fractional part of that business. Think like a business owner, not a trader. Ask: "Would I be happy owning this business for 10 years?"
Long-Term Returns of Equity
Over long periods, equity as an asset class has delivered the highest real returns compared to gold, real estate, and fixed income. The Indian equity market has delivered ~15% CAGR over the last 20 years.
Volatility Is the Price of Admission
Short-term volatility is the cost you pay for higher long-term returns. Embrace it rather than fear it.