Devina Mehra shares investment mantra for stock market, mutual fund investors: Embrace the possibility of being wrong

In the dynamic world of stock market investing, where uncertainty and market fluctuations are the only constants, the stakes are high and the pressure to make the right decisions can be overwhelming. While investors strive for perfection, believing that high stock market returns hinges upon making right trading decisions most of the time, Devina Mehra, Founder & CMD of First Global, offers a counterintuitive yet powerful insight: You can still achieve excellent returns by being right just 55% of the time.

In a short video posted on social media platform X (formerly Twitter), Mehra gave a powerful mantra of embracing the possibility of being wrong. She emphasised the importance of acknowledging that not every investment decision will be successful.

According to her, whenever you make an investment decision, especially when buying a stock, it is crucial to tell yourself that you may be making a mistake. This mental exercise is not about fostering pessimism; rather, it is about crossing a psychological bridge that prepares you for the inevitable ups and downs of the market.

“If you expect to be right in every case, there will be situations where you will need to sell a stock because what you anticipated didn’t happen. If you can't admit that you might be wrong, you’ll struggle to make the necessary adjustments,” Mehra explains.

No one likes to admit they have made a mistake, but in the context of investing, this reluctance can be detrimental. Mehra points out that making errors is not a flaw, but it is a fundamental aspect of how markets function.

Listed to Devina Mehra

“Even the best fund manager in the world is not right more than 70% of the time. In fact, you can have excellent returns by being right 55% of the time. So whenever you are making an investment decision, at least some of those decisions are going to go wrong. So have that in your mind right upfront that these decisions that I am making may go wrong, and I will need to exit if it does go wrong,” Mehra said.

She believes that this mindset shift can dramatically improve your stock market investment returns by preventing emotional attachment to losing investments and encouraging timely exits.

By acting on this mantra, investors can approach the market with greater confidence, knowing that consistent, disciplined strategies, rather than perfect ones, lead to long-term success.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.