{"id":21957,"date":"2026-05-26T12:30:01","date_gmt":"2026-05-26T07:00:01","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=21957"},"modified":"2026-05-27T10:42:19","modified_gmt":"2026-05-27T05:12:19","slug":"yet-another-endurance-test-for-long-term-investors","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/yet-another-endurance-test-for-long-term-investors\/","title":{"rendered":"Yet another endurance test for long-term investors."},"content":{"rendered":"<p><span style=\"font-family: georgia, palatino, serif;\">Markets have a way of testing not just our investing prowess, but our character.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">Almost all the long-term investors have heard the phrase: <em>\u201c<strong>Investing is a marathon, not a sprint<\/strong>.\u201d<\/em> It sounds sensible. Rational. Easy to agree with.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">And in good times, it feels effortless.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">When markets are rising steadily, portfolios are compounding, SIPs are working beautifully and optimism is everywhere, everyone believes they are a long-term investor. Patience appears easy when rewards come quickly.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">But the real test of temperament begins when markets stop cooperating.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">When returns flatten.<\/span><br \/>\n<span style=\"font-family: georgia, palatino, serif;\">When indices move sideways for a couple of years.<\/span><br \/>\n<span style=\"font-family: georgia, palatino, serif;\">When portfolios do not reflect the effort, conviction or patience invested into them.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">That is when the difference between a true marathon runner and a short-distance sprinter reveals itself.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The current phase in markets is one such testing time.<\/span><\/p>\n<h3><span style=\"font-family: georgia, palatino, serif;\"><strong>The Seduction of \u201cBetter Opportunities\u201d<\/strong><\/span><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif;\">Whenever one asset class or geography underperforms for a period, a new narrative emerges.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">Today, the seduction is visible in multiple forms:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif;\">The AI-led rally in select US technology companies<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Enthusiasm around global themes and international diversification<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Growing admiration for China\u2019s infrastructure execution and manufacturing dominance<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Cynicism about India\u2019s pace of reforms and governance execution<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif;\">This shift in narrative is not unusual. Markets amplify recent performance into grand conclusions.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The same people who were extremely bullish on India two years ago now wonder aloud whether India can truly deliver. Some believe the reforms are \u201cmore optics than substance.\u201d Others point to rising crude oil prices, bureaucracy, infrastructure bottlenecks or uneven execution as reasons for pessimism.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">But long-term investing demands something deeper than reacting to changing narratives.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">It demands perspective.<\/span><\/p>\n<h3><span style=\"font-family: georgia, palatino, serif;\"><strong>Markets Move in Cycles. Narratives Do Too.<\/strong><\/span><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif;\">One of the biggest mistakes investors make is extrapolating recent performance indefinitely into the future.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">When US markets outperform for some time, investors begin believing only US markets can create wealth.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">When China grows rapidly, it appears unstoppable.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">When commodities rally, \u201cold economy\u201d becomes the future again.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">But history shows leadership across markets changes cyclically.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">India itself has gone through periods of underperformance followed by phases of extraordinary wealth creation. Investors who stayed invested through the difficult phases benefited disproportionately when the cycle turned. In fact, it did well on a dollar adjusted basis over the last decade. Indian markets delivered approximately 13.5% annualized returns in US dollar terms over 30 years, placing India among the best-performing large markets globally.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">Also, the Indian market is better diversified unlike some of the other markets that are pulling in investors. For example, South Korean Kospi Index is hugely skewed towards two stocks Samsung Electronics and SK Hynix accounting for as Reuters recently reported about <strong>44% of the KOSPI\u2019s total value<\/strong>. That\u2019s betting on two companies not a country. And in Taiwan\u2019s case it\u2019s betting on TSMC. We are not suggesting you should or shouldn\u2019t invest in them, but you should be aware of the risks in these decisions. In contrast Top 2 stocks account for 15 to 18% of Nifty 50. And while most currently performing markets are driven by Technology stocks, Indian market is well diversified across sectors.\u00a0<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The important insight is this:<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\"><em>It is difficult to create long-term wealth by chasing the latest winning narrative. And even when you do get great returns from such investments, it is even more difficult to retain the wealth created by continuing to ride the same narrative. Usually, the horse that takes a huge lead in a long-distance race like the Derby or Oaks rarely wins. The same is true in a marathon. And it\u2019s easy to discount the ones that are gracing the back even though they are maintaining a good steady pace required to clock a winning time.<\/em><\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The good thing about investing is that you don\u2019t need to pick one winner because everyone else is a loser. That would happen if you sold or reduced your India portfolio and put it in, say the US, South Korean or Taiwan market or the Semi-conductor ETF.<\/span><\/p>\n<h3><span style=\"font-family: georgia, palatino, serif;\"><strong>India\u2019s Structural Strengths Remain Intact<\/strong><\/span><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif;\">Serious long-term investors must distinguish between cyclical problems and structural advantages.<\/span><\/p>\n<p><strong><span style=\"font-family: georgia, palatino, serif;\">India\u2019s structural strengths remain significant:<\/span><\/strong><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif;\">A large domestic consumption economy<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Strong entrepreneurial culture<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Formalization of the economy<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Expanding financialization of savings<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Digital public infrastructure at massive scale<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Growing manufacturing capability<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Rising middle-class participation in equities<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Deepening domestic institutional capital<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif;\">Most importantly, India today is not dependent solely on foreign capital to sustain markets. Domestic flows through SIPs, retirement savings and retail participation have become a stabilizing force.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">This is a profound structural shift compared to earlier decades.<\/span><\/p>\n<h3><span style=\"font-family: georgia, palatino, serif;\"><strong>Yes, Crude Oil Matters<\/strong><\/span><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif;\">India remains vulnerable to crude oil shocks.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">Higher crude impacts:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif;\">Inflation<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Fiscal balances<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Currency stability<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Consumption<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif;\">It is a genuine macro risk and cannot be dismissed casually.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">But investors often confuse a headwind with a derailment.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">India has navigated oil shocks repeatedly across decades while still compounding economic growth and market capitalization over time.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">Temporary stress does not invalidate long-term direction.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">No growing economy progresses in a straight line.<\/span><\/p>\n<h3><span style=\"font-family: georgia, palatino, serif;\"><strong>The Psychological Edge of Long-Term Investors<\/strong><\/span><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif;\">The greatest advantage long-term investors possess is not superior intelligence.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">It is emotional endurance.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The ability to:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif;\">Stay rational during pessimism<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Avoid performance-chasing<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Resist narrative swings<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Continue investing during dull phases<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">Hold quality businesses through temporary disappointment<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif;\">This is where temperament becomes more important than forecasting.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">Because long-term investors success rarely comes from correctly predicting the next hot market. It comes from participating consistently in long-term compounding while avoiding catastrophic mistakes.<\/span><\/p>\n<h3><span style=\"font-family: georgia, palatino, serif;\"><strong>The Real Marathon<\/strong><\/span><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif;\">A marathon is not difficult in the first few kilometres.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The difficulty begins later \u2014 when fatigue sets in, excitement fades and progress feels painfully slow.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">Investing is no different.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The real long-term investors are not identified during bull markets.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">They are identified during periods like these:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif;\">when returns are muted,<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">when alternative narratives look more exciting,<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">when conviction feels uncomfortable,<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\">and when patience stops feeling rewarding.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif;\">That is when compounding quietly does its deepest work.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">The investors who endure these phases thoughtfully \u2014 with quality businesses, reasonable valuations, proper diversification and disciplined asset allocation \u2014 are usually the ones who benefit most when the cycle eventually turns.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif;\">And history suggests that it always does.<\/span><\/p>\n<p data-start=\"4838\" data-end=\"5082\"><a href=\"http:\/\/omega\/portfolio-advisory\/\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-21414\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR.jpg\" alt=\"\" width=\"851\" height=\"251\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR.jpg 851w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-600x177.jpg 600w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-150x44.jpg 150w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-768x227.jpg 768w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-270x80.jpg 270w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-370x109.jpg 370w\" sizes=\"(max-width: 851px) 100vw, 851px\" title=\"\"><\/a><\/p>\n<p data-start=\"4838\" data-end=\"5082\">Do you have investments in companies that have an Excellent Financial Track Record of over 10 years? Find a few such companies, and add them to your\u00a0<a href=\"https:\/\/www.moneyworks4me.com\/portfolio-management\/watch-list\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Watchlist.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Markets have a way of testing not just our investing prowess, but our character. Almost all the long-term investors have heard the phrase: \u201cInvesting is a marathon, not a sprint.\u201d It sounds sensible. Rational. Easy to agree with. And in good times, it feels effortless. When markets are rising steadily, portfolios are compounding, SIPs are [&hellip;]<\/p>\n","protected":false},"author":715,"featured_media":22162,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"yes","_lmt_disable":"no","footnotes":""},"categories":[1],"tags":[],"modified_by":"MoneyWorks4me","_links":{"self":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/21957"}],"collection":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/users\/715"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/comments?post=21957"}],"version-history":[{"count":1,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/21957\/revisions"}],"predecessor-version":[{"id":22160,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/21957\/revisions\/22160"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media\/22162"}],"wp:attachment":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media?parent=21957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/categories?post=21957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/tags?post=21957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}