Malfunctions of My Brain

The last two trading sessions of the Indian Stock Market witnessed market sentiments see-sawing with identical numbers in both directions.

The fundamental tenet of investing is buying valuable assets with appreciation prospects. What I, as an investment advisor fail to understand is, where do the sentiments fit in Economy, GDP, IIP, and CMP?

Human behavior often tends to equate the money invested in the market to their own personal life.
We carry our life’s bad experiences endlessly without letting them go. We not only ignore them but also we refuse to accept that’s the existence within. Replacing them with new good ones is an art of living.

Let me share 5 simple “Tips to become a millionaire”.

1. Never DIY
You will miss more important points than you can imagine. There are many blind spots in every wealth-building process.p You need someone to push you when your engine doesn’t crank up, to navigate you to your destination when your GPS shuts down, to show you the light when everything looks dark and dingy.

When it comes to learning we pay the highest “brokerage in the name of tuition fees”. Which, if we carefully look at, was done for the purpose of earning.
Then when it comes to earning Money on Money, why do we go solo, DIY Zindabad? We are so worried about paying Rs 20 to a thousand as brokerages to create wealth. Ain’t this penny wise and pound foolish nature?

I am sharing a conversation I had with my intern.
Why did you open 3 accounts with Zero-Robo Advisor?
DD: Sir it is cheap and I wanted to apply for IPO’s.
Why did you go to Hinduja instead of going to a cheap college?
DD: I got your point, Sir. I should have thought like that.

2. Building Trust
Our trust factor on investment vehicles and advisor fails at the drop of a hat. The very next day PM Modi, FM, and Indian systems become their enemy. “I have negative returns” is the reason. The very next day’s action is “Coup d’état“ of all their investments. “I will do everything from now on” is the clarion call they sound.

What happened to the time horizon we decided upon?
What happened to the value averaging we talked about?
Technically we are back to Square One.

3. Follow the Process
One of the most difficult parts of wealth creation is this. This phase is like romancing a girl or a boy in a crowded pub with loud music. You can’t listen to what the other person says, too many distractions, noise and you are nervous. “The Process of Wealth Building” is slow and steady. Never hustle up, never compromise on quality. Hence you have to follow the set path. Trust me it’s boring, and that creates wealth.

4. Be Patient
It is the virtue of being cool in all situations. A point to every investor looking for opportunities while buying. Most people think that they get to buy stocks and mutual funds at lower evaluations every single day. Even the most seasoned investor we adore like Jhunjhunwala’s, Dolly’s & Kedia’s get to buying their favorite stocks only about 24 times in 200 trading days.

5. Stop being Greedy
One of the greed-driven exercises that I have noticed is people following News Channels and buying stocks. “CBNC ne lekhe rakha hai sabka!” my investor Ankit’s comments and observations speak volumes of dependency on the useless news by investors. This leads to most of them buying while it has gone up and sold them when they come down below the purchase price.

** “Mutual Funds & Stock Market Investments are subject to Market Risk”
Govt asked me to tell you this. However, in the past 19 years, I am still searching for that Risk. “Time is the “Only Risk “that you Face”.