Aditi Mittal

Kirti Rathod


Pursuing Economics, and deep-diving to bring you A1 writings...


Riya Bhatia


> Regret often arises when we realize we've acted without proper planning. This sentiment is especially prevalent in investing, where outcomes are inherently uncertain. Investing is probabilistic, meaning there's never a 100% guarantee of any particular outcome.

In the realm of investments, there's a striking narrative of two undisclosed businesses, both prominent players in a thriving sector. One business experiences a decline in gross margin over a decade, while the other witnesses substantial growth. Despite the availability of both stocks for potential investment a decade ago, hindsight reveals a vastly different story. The emotions tied to these investment decisions often cloud our judgment, leading to a life filled with either regret or false superiority.

#### The Probabilistic Nature of Investing

Investing is inherently uncertain, driven by probabilities rather than certainties. We can never guarantee a profitable outcome. Consider a scenario where we anticipate profit in our portfolio over the next year. While we may expect success, the reality remains unpredictable. This uncertainty amplifies when investing for long-term goals like retirement or significant expenses.

#### What's Certain in Investing?

Amidst this uncertainty, certain outcomes remain predictable:

- Missing out on potential winners
- Holding onto underperforming investments
- Encountering emotional reactions tied to investment outcomes

Regret often ensues from missing out on lucrative opportunities or making poor investment choices. However, these emotions are influenced by hindsight bias, offering little control over actual outcomes.

#### Navigating the Complexity of Probability

Understanding probability in investing proves challenging due to the entanglement of joy and regret. However, having a well-thought-out plan can mitigate emotional distress. By envisioning ourselves as investors faced with choices a decade ago, we gain insight into the complexities of decision-making.

#### Crafting a Plan for Resilient Investing

To navigate this uncertainty, we must:

- Educate ourselves about investment fundamentals
- Anticipate potential business outcomes and market fluctuations
- Determine a reasonable expected return and allocate resources accordingly
- Remain steadfast in our investment strategy despite market fluctuations
- Regularly review and adjust our plan based on changing circumstances

A meticulously crafted plan serves as a guiding light amidst the uncertainties of investing, allowing us to allocate resources strategically and alleviate emotional turmoil.

#### Embracing the Journey

Investment decisions are often fraught with uncertainties and emotions. Yet, by reminding ourselves of the rationale behind our choices, we can find solace in knowing that we acted with foresight and intention. After all, navigating the complexities of investing is a journey filled with valuable lessons and opportunities...


Regret often arises when we realize we've acted without proper planning. This sentiment is especially prevalent in investing, where outcomes are inherently uncertain. Investing is probabilistic, meaning there's never a 100% guarantee of any particular outcome.

Can you plan to invest without regret?


> The RBI has directed banks to grant cardholders the flexibility to alter their billing cycle multiple times. To maximize the interest-free period, it's crucial to be aware of your billing dates and settle all outstanding dues promptly.

In April 2022, the Reserve Bank of India (RBI) implemented regulations granting credit card users greater control over their finances. These regulations, effective from July of the same year, mandated banks to offer cardholders a one-time option to modify their credit card billing cycle. This initiative aimed to enhance flexibility and cater to individual cash flow needs.

#### Recent Amendments by RBI

On 7th March, RBI introduced amendments to these rules, further empowering card users. Now, banks must allow customers the flexibility to change their billing cycle more than once, providing greater customization and adaptability.

Additionally, RBI amended regulations concerning the minimum payment due. Previously, banks were required to disclose the remaining unpaid amount losing the benefit of the interest-free period. However, this clause has been removed in the recent amendment. Instead, banks are now mandated to caution users about the consequences of making only minimum payments, without specifying the exact amount attracting interest.

#### Understanding Credit Billing Cycles

Controlling the billing cycle offers numerous advantages for cardholders. A billing cycle spans the period between two consecutive statement dates, with the due date typically 10-15 days after the statement generation. By strategically setting the billing cycle, users can align the due date with their cash flow, optimizing the interest-free period.

#### Maximizing Benefits

By setting the statement date strategically, users can maximize the interest-free period. For example, aligning the statement date with a period of minimal expenditure can extend the interest-free period up to 45 days. Moreover, adjusting billing cycles becomes crucial for individuals managing multiple credit cards, streamlining due dates for easier management.

#### How to Make Changes

Cardholders can request changes to their billing cycle by contacting the card issuer through customer care channels. However, it's essential to clear outstanding dues and EMIs before making such requests to avoid any complications.

#### Understanding Minimum Payments

While minimum payments offer temporary relief from late payment penalties, they come with long-term consequences. Outstanding amounts attract interest, suspending the interest-free period for subsequent transactions. Experts advise clearing the full outstanding amount each month before the due date to avoid accumulating interest liabilities.

In essence, these regulatory amendments offer card users greater autonomy and control over their credit card management. By understanding and leveraging these changes, individuals can navigate their financial responsibilities more effectively, ensuring sound financial health in the long run.


The RBI has directed banks to grant cardholders the flexibility to alter their billing cycle multiple times. To maximize the interest-free period, it's crucial to be aware of your billing dates and settle all outstanding dues promptly.

Impact of RBI's credit card billing cycles regulation on you


> People who want to invest and read a few articles or hear popular sayings linked to Warren Buffett may think they can copy his investing achievements. They might even base their investment plans on these sayings. However, Buffett's yearly letter explains that while investing is straightforward, it's not always easy.

Despite Warren Buffett's immense wealth, he led a simple and frugal lifestyle, making him relatable to many ordinary investors. However, this relatability can be misleading.

Many aspiring investors, inspired by Buffett's simplicity and success, attempt to mimic his investment approach based on snippets they've read or heard about him. Unfortunately, these individuals often fall short of replicating his achievements. One reason for this could be the lack of understanding the full context behind Buffett's statements.

There is a tendency to selectively focus on catchy phrases attributed to Buffett while overlooking the complete message he intended to convey. This incomplete knowledge can lead to misguided investment decisions.

In Berkshire Hathaway's 2023 annual letter released on February 24, 2024, Buffett and Charlie Munger addressed some common misconceptions, shedding light on the importance of grasping the full context of their advice for successful investing.

##### Misconception 1

Some people believe that you only need to make a few big financial decisions to retire rich. But is that really true? According to this year’s annual shareholder letter, it's not that simple. While making a couple of good decisions can be rewarding, it's equally important to avoid serious mistakes. These mistakes can have a big impact on your finances, leading to permanent losses. They include things like trying to time the market, not diversifying your investments, and choosing poor stocks.

There are also many dangers in the investment world, such as insider trading, fraudulent schemes, and misleading information. If you can navigate through these challenges safely, then making a few big decisions right can help you retire rich.

##### Misconception 2

You may have heard the phrase "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." But does this mean that investing in average companies is pointless? Not necessarily. Warren Buffett himself has said that investing in fair companies can work, especially when done on a smaller scale.

Buffett operates on a much larger scale than most of us can imagine, with billions of dollars at his disposal. So while it's good to look for wonderful companies, it's also okay to invest in fair companies at a good price, especially for retail investors like us.

##### Misconception 3

Some people think that investing is as simple as finding good companies with honest management, buying their shares, and holding onto them. But according to Buffett, investing is simple but not easy. It's hard to predict which businesses will succeed in the long run, and luck plays a role too.

Buffett himself has made many decisions over the years, some of which have been very successful. But he acknowledges that luck has played a part in his success. So next time you hear a catchy investing phrase, remember that investing is hard work and requires careful consideration. Don't rely on incomplete information or misconceptions when making investment decisions.


Discover the truth behind Warren Buffett's investing success. Unveil the misconception of catchphrases in investing strategies. Buffett's wisdom emphasizes simplicity, not ease. Delve into his annual letter insights and debunk myths surrounding his methods. Ideal for aspiring investors seeking clarity and actionable advice.

Showing posts from personal-finance category

Can you plan to invest without regret?

Impact of RBI's credit card billing cycles regulation on you

Warren Buffett's Letter Clears 3 Investing Myths