Process & the Discipline to execute it are the Key

Hi Friend,

“If past history was all there was to the game, the richest people would be librarians” - Mr. Warren Buffett, Chairman, Berkshire Hathaway

“It's not supposed to be easy. Anyone who finds it easy is stupid”- Mr. Charlie Munger, Vice Chairman, Berkshire Hathaway

What the best investing minds in the world say from the above is that ‘just bookish knowledge’ may not be sufficient and investment may involve other complex skills (like mastering one’s own psychology so that one can execute what one learns etc.,)

Sure Mutual Funds are a great way to buy part ownership of businesses, to participate in 'India growth story' , to reduce glaring disparities in wealth distribution in the country. It is a ‘Great Idea’.

Is it sufficient to have just a ‘Great Idea’ to get the desired results ?

After all mutual funds are in existence for more than 25 years now! Did that change how people invest ?  What percent of people's net worth goes in to Mutual Funds (Equity) even today ? 

A 5% net worth in Mutual Funds or in Equity may satisfy the gambling tendencies of a person and may be useful in boasting to his friends that he too is savvy.

But, 5% net worth in Mutual Funds, does it make any material difference to the life of an investor when a overwhelming part of one’s portfolio is invested in instruments like FDs, Real Estate etc., ? 

Getting more than 50% of net worth in to equity through mutual funds, might change an investor’s life to the better. But, is that easy ?

If that is easy how many people are doing it ?

Here is what one of the greatest entrepreneurs of all time and the creator of the ‘Apple inc’ , Mr. Steve Jobs, has to say about the complexity of getting a job done and what goes in to the ‘execution’ of an idea ‘however good’ the idea may be.

Here is the Source video :

And the edited transcript, 

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• One of the things that really hurt 'Apple' was, after I left, John Scully got a very serious disease. 

• And that disease - I’ve seen other people get it too -it’s the disease of thinking that really great idea is 90% of the work.

• And that if you just tell all these other people, you know, “here’s is this great idea,” then of course they can go off and make it happen.

• And the problem with that is, there is just a tremendous amount of craftsmanship in between a great idea and a great product.

• And as you evolve that great idea, it changes and grows.

• It never comes out like it starts, because you learn a lot more as you get into subtleties of it and you also find there are tremendous trade-offs that you have to make.

• I mean, there are certain things you can’t make electrons do. There are certain things you can’t make plastics do or glass do or factories do or robots do.

• And as you get into all these things, designing a product is keeping 5000 things in your brain and fitting them all together and kind of continuing to push to fit them together in new and different ways to get what you want.

• And every day you discover something new that is a new problem or a new opportunity to fit these things together a little differently.

• And it’s that process that is the magic.

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Thank you.