Live with uncertainty, or at least be willing to accept a lack of clarity. In March 2020, why did the index fall by 40%?
Because everyone was panicking. At that time, many of us concluded that humanity was doomed, like the dinosaurs, and that the world was coming to an end.
But look at what happened just 17-18 months later. By October 2021, the index had nearly reached 19,000, almost 18,500.
So, in March 2020, we thought humans were the next dinosaurs, and 18 months later, the same people were saying, ‘Our golden era is about to begin.’
Human beings are naturally deterministic, but for success, it's crucial to adopt a probabilistic mindset.
In investing, what often hinders success is our deterministic nature—that's the real challenge.