A half baked equity investor thinks that it is easy to beat market and fund manager returns by investing in stocks; and only those fail to do so who are not clever enough. This false notion takes stronger hold on him when he reads books like Basant Maheshwari’s The thoughtful investor, blogs like rakesh-jhunjhunwala.in and watches interviews of investors like Porinju Veliyath who frequent business news channels.
The result is that his investing becomes a deliberate pursuit of multibagger stocks, and successful investing he takes to be equivalent of a series of definite successful stock market investments. In seeking for higher return, he hunts for the return that does not exist, takes naive risks, and ends up suffering irrecoverable losses. Too late he discovers that he has been deceived by the illusion of knowledge that characterises majority of retail investors.