The story of the donkey and the traditional lesson in inventory funding

The story goes that when upon a time, there was a service provider who needed to go to town usually to purchase issues and put them on Donkey’s shoulders to return dwelling. The product owner’s donkey at all times thinks he’s very sensible, at all times likes to brainstorm, on the lookout for methods to make the products he has to hold as gentle as attainable.

As soon as, a service provider purchased a load of salt. He tied the load tightly, put it on the Donkey’s again, after which went behind to induce the Donkey to go quick. After strolling for some time, the service provider and the Donkey got here to a small river, and the service provider urged the Donkey into the water. The donkey was not cautious and slipped and fell into the water. The river water has soaked into the mouth of the salt load, inflicting the salt to dissolve quite a bit.

Once I obtained up, I found that the load of salt I used to be carrying was a lot lighter, and I felt very pleased in my coronary heart. Having gained expertise this time, each time we cross the river, Donkey pretends to slide and fall with a purpose to drop a number of issues on his again into the river. The service provider knew this, aspiring to punish the Donkey. The service provider went into town, purchased a load of cotton, and loaded it on the Donkey’s again. As soon as once more passing by way of the small river, seeing the river, Donkey me joyfully cried out, didn’t hesitate to step into the river. After we reached the center of the river, Donkey pretended to slide and fall.

The donkey fortunately thought, “Once I rise up, the issues on my again shall be a lot lighter.” However once I obtained up, I instantly felt that the issues on my again have been a lot heavier than earlier than. It turned out that the cotton load after absorbing the water grew to become a lot heavier than earlier than, not like the same old salt load. The donkey didn’t count on such a heavy load of cotton on his again, so he needed to bow his head and proceed with out daring to complain.

From the above parable, we study the lesson that when doing something, we should always not rigidly apply the expertise we now have had, however we have to see how the precise scenario is, improvise, select. make it proper.

In inventory investing, there are various shares with repeated “hits”. Nonetheless, this can’t final ceaselessly and traders who assume within the path of “taking the driving force’s card” will eventually be “overridden”. Subsequently, traders have to be alert and behave appropriately within the context in order to not change into a “Donkey” in securities funding.

Minh Lengthy

Enterprise & Advertising and marketing