Paul Mampilly Explains How Greed Ruins Newbie Investors

Newbies will always lose out when it comes to investing if they don’t listen to experienced investors such as Paul Mampilly. Paul Mampilly is the winner of the esteemed Templeton Foundation Award. He has years of experience with investing. View Paul’s profile on Linkedin.

According to him, many newbies lost money during the dotcom bubble at the end of the twentieth century. The reality is that major stocks were going up, and newbies were rushing to buy into these stocks so that they could make more money. However, what they did not realize is that stocks can not go up forever. If they went up, they will go down again. Thus, all the newbies who poured money into the dotcom stocks lost it all at the end of the day.

The same is happening now. A lot of newbies who are pouring money into Bitcoin will lose their money and the shirts off their backs. They need to stop rushing into things and start listening to experienced investors like Paul Mampilly, who have been around the block and know how likely a certain investment is to succeed. Visit Bloomberg to know more about Paul Mampilly.

Paul Mampilly sold all of his dotcom stocks, and he did this even as they were still rising and their prices were still going up. He admits that at first, he thought that he may have made a mistake. That is the natural tendency of human nature. We do not want to miss out on things. There is also the emotion of greed, which plays a large role in investing and is what is causing people to invest so much money into Bitcoin. However, he knew that he had to make decisions based on logic, not emotions. That is why he did not buy the stocks again. He was happy with the profit that he already made.

He watched as the prices went up by twenty percent, sometimes even as high as fifty percent. A year or two later, he saw all the stocks starting to tumble. He knew that it would happen sooner or later, and now he was so happy that he took his profits when he was able to. His friend, on the other hand, did not listen to his advice. Instead of ending up with profits, she ended up with a balance of zero. She lost all of her money because she did not use logic to prevail over the emotion of greed. Check: