“The secret is out! Investing in the stock market is like piloting a plane. Portfolio will take-off after taxi-time on the runway for about 15 years. Once airborne, it will continue to climb into the zone of unlimited growth. We do not hear anything about this in the press. It is one of the best-kept secrets on the stock market.
Our desire to provision our future by growing our money prods us to invest in the stock market. Randomness and causality are the two forces driving its dynamics. Randomness gives rise to the probabilistic behaviour of portfolio returns, while causality generates their deterministic behaviour.
The existence of portfolio take-off has important implications for us investors. First, it gives an overall direction to our investing activities – achieving take-off. Second, it provides overall guidance in managing our portfolios – for take-off. Third, it relieves our minds of doubts about the possibility of take-off – psychologically, the impossibility barrier falls off.”