The foundation of successful investing isn’t intelligence. It’s patience.
Last Update Date: 05-10-2026
Published by Mint
Abhishek Kumar's role: Wrote this article
Abhishek Kumar wrote this column for Mint, arguing that temperament and patience matter more than intelligence in long-term investing, and cautioning against investing with borrowed money.
What Abhishek Kumar said
Why does patience matter more than intelligence in investing?
Because temperament, not analysis, decides who stays in the game long enough for compounding to work. The cautionary tale I keep returning to is of a brilliant investor who was every bit as sharp as his two famous partners but was in a hurry; he borrowed to invest, was forced to sell during a severe crash, and his name faded while theirs became household names. Being able to stay calm and keep to a plan while others panic is, in my experience, what separates good long-term outcomes from disappointing ones.
Is it ever sensible to invest with borrowed money?
I would avoid it. Leverage magnifies gains when a bet works, but in a volatile asset it can wipe out the investor just as quickly when it does not. The deeper problem is that a borrowed position removes your choice: when markets fall, the lender's margin call forces a sale at exactly the wrong time, locking in a loss that compounds against you for years. Investing only what you own means a downturn is something you can wait out rather than something that takes you out.
How do I stay disciplined when markets keep swinging?
Markets move with economic news, geopolitics and shifting sentiment, and fear and greed push people to sell in a panic or chase what has already run up. I find a few habits help: not checking the portfolio obsessively, since daily moves say little about long-term results; keeping to the chosen strategy instead of the latest fad; and judging decisions on fundamental value rather than mood. Compounding does most of its work over decades, so the real skill is giving it that time.
Are there practical advantages to holding investments for the long term?
Beyond compounding, patient investing is a steadier way to work towards goals such as retirement, a home or a child's education through regular contributions to a diversified portfolio. There is also a tax point: under Indian rules, gains on investments held for more than a year are taxed as long-term capital gains at lower rates than short-term gains, which further rewards the investor who does not keep trading in and out.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on money management
This Mint column uses the story of Rick Guerin, an early associate of Warren Buffett and Charlie Munger, to show how impatience and borrowed money can derail an investing career. It discusses how compounding works over long periods, the risks of leverage in volatile markets, and the emotional discipline that long-term investing needs.
Publisher source
The foundation of successful investing isn’t intelligence. It’s patience.