‘Time in beats timing’: CA lists 7 ‘stupid easy’ mistakes that destroy long-term investing

Long-term investing rarely fails because of a lack of intelligence. More often, it collapses under avoidable behaviour. In a sharply worded post on X (formerly Twitter), chartered accountant Nitin Kaushik laid out what he called “stupid easy” ways investors quietly destroy their long-term compounding. 

Here’s a closer look at the seven habits he believes can seriously damage wealth creation over time. 

1. Selling the moment markets fall 10-15% 

“The second the market drops 10-15%,” many investors rush to exit. The problem? That loss becomes real the moment you sell. More critically, you often miss the recovery that historically follows corrections. Markets are volatile in the short term but trend upward over long periods. Panic selling interrupts compounding right when it matters most. 

2. Treating investments like a personal ATM 

Using long-term investments for non-emergencies — vacations, gadget upgrades, wedding extras, or a “just this once” expense — can quietly sabotage future wealth. Every withdrawal doesn’t just reduce current capital. It removes decades of potential compounded growth. What feels like a small dip today could translate into a significantly smaller corpus 20–25 years later. 

3. Chasing the latest market hype 

From EV stocks to AI themes and whatever comes next, investors often rotate from one “hot flavour” to another. Kaushik’s warning is blunt: buy after the pump, sell after the dump — and long-term returns suffer. Entering trends after sharp rallies increases risk, while exiting in fear locks in losses. Compounding rewards discipline, not trend-chasing. 

4. Having zero emergency fund 

One of the most underestimated risks to long-term investing is liquidity stress. Without 6-12 months of emergency cash, investors are forced to sell stocks at the worst possible time — during job loss, medical emergencies, or unexpected crises. Selling quality investments in a downturn to meet urgent expenses can permanently damage wealth-building plans. An emergency fund protects not just your finances, but your investment strategy. 

5. Staying in high-cost funds 

Fees may look small on paper — 1.5% to 2% annually — but over 20–25 years, they compound against you. Kaushik estimates that such costs can eat away 30–50% of the final corpus. High expense ratios, frequent churn, and hidden charges quietly drain returns. Lower-cost options leave more room for compounding to work in the investor’s favour. 

6. Waiting forever for the “perfect” dip 

“Market is too high” is a common refrain. But waiting endlessly for the ideal correction often means years of missed compounding. Markets can remain elevated far longer than expected. The opportunity cost of staying out can outweigh the benefit of a slightly better entry price. Time in the market, not timing the market, drives long-term outcomes. 

7. Letting emotions dictate decisions 

Greed encourages overexposure near market peaks. Fear forces exits near bottoms. Without a written investment plan — asset allocation, rebalancing rules, and long-term goals — decisions become emotional reactions. And emotional investing, Kaushik argues, is “financial suicide.” A rule-based approach creates guardrails when volatility spikes. 

The bigger lesson 

Compounding is powerful — but fragile. It thrives on consistency, discipline, and patience. It collapses under panic, impulse withdrawals, hype-chasing, high fees, and emotional decision-making. The irony? None of these mistakes require complex financial knowledge to avoid. They demand behavioural discipline. In the end, long-term investing is less about finding the next big winner — and more about not sabotaging the process that builds wealth quietly over decades.