5 Life-Saving Lessons on Investing from a Happy Marriage


Maintain a 5:1 Good To Bad Ratio
5 Life-Saving Lessons on Investing from a Happy Marriage
As per a leading researcher on marriages, John Gottman, stable marriages experience five good interactions for every not-so-good one. A "good" interaction might be spending a fun afternoon together, or a pleasant chat about a movie, or anything else that's positive. "Bad" interactions include fights, disagreements, or disappointments. For a happy marriage, it becomes important that you honour the 5:1 rule. This is also true of investing. Expecting all your stocks to be multi-baggers will lead you to frustration when a few of them don't perform as expected. Also, expecting every stock to make you good amount of money will lead you to make hasty decisions. So, to achieve success as an investor, maintain a 5:1 ratio. Expect to be wrong sometimes. Expect 1 stock to go bad for every 4 or 5 that can go good. When you keep this in mind, you will be more aware of the risks you are taking and therefore more careful in your stock selection.