Here’s the translation into American English:
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Ricardo Ramos D’Agostino, a representative of Grupo Capital, has highlighted the considerable influence that fear and greed exert on investor profitability. In his analysis, he asserts that the true challenge for those who decide to invest lies not so much in external economic crises, but in the mind of the investor themselves, with emotional self-control being an essential element for achieving success in financial markets.
During market fluctuations, greed often leads investors to act impulsively, buying assets without a proper assessment of their fundamentals. On the other hand, in times of decline, fear can masquerade as prudence, inducing the hurried sale of assets that would normally be considered solid. Ramos D’Agostino argues that both behaviors stem from the inability to maintain calm in volatile situations.
Grupo Capital presents the market as a pendulum swinging between euphoria and depression. In this context, Ramos D’Agostino emphasizes the need for disciplined investors to avoid being swayed by these extremes. Understanding that behind every transaction there are businesses with real value is crucial for distinguishing between investment and speculation. The key, he indicates, lies in identifying assets with underlying value, which are capable of producing useful goods or services that will increase in price over time.
Compound interest emerges as an indispensable ally for those who opt for disciplined investing. Ramos D’Agostino illustrates the difference in outcomes between two types of investors: one who seeks quick profits and is constantly entering and exiting the market, and another who chooses to hold their investment long-term in companies with competitive advantages. The gap in results is notable, as the first ends up losing both time and commissions, while the second experiences exponential growth in their capital.
For Grupo Capital, investing also represents an exercise in character. Patience, while it does not guarantee immediate results, significantly increases the odds of long-term success. In the words of Ramos D’Agostino, “profitability is the result; patience and emotional control are the means to achieve it,” thus emphasizing that the mindset of the investor is a decisive factor in their performance in the markets.
Referrer: MiMub in Spanish