Investing is Living!

I have written multiple blogs on my idea of investing and how this blog is basically a way to talk to myself and to let my friends know what’s on my mind. The more I’m learning, the more firm my belief has become is that investing is not about picking stocks, it’s about how you live.

I’m thankful to some people who’ve shown me the way as I struggle to make correct choices. Rakesh Jhunjhunwala is right there at the top. Mohnish Pabrai and through him, Guy Spier, Nick Sleep and ofcourse Charlie Munger have all contributed to a large extent what I think, live and breathe.

I was talking to my cousin who said why don’t I popularise my blog. That made me think for a blog and I said- if all these people begin to charge for what they’ve taught me and millions alike, I’ll be their slave for next few births. The idea of giving back without anything in return is my sole passion for writing this blog and is a small token of appreciation from the masters I’ve learnt everything from. The real greats give all the knowledge they’ve to all of us for free. This is the least I can do.

Another point is that I wish to remain an individual investor- not a fund manager, PMS manager, broker, or anything who takes fees or commission to pay his bills and live lavishly. This feeling strives from the fact that unless you’re on your own, you’re not really independent. For me, freedom to not do anything for anyone is the biggest achievement. Here’s a fantastic video link on this subject- https://youtu.be/7YXOeiysR50

If you’re interested in becoming a long term investor, the first and foremost requirement is to slow things down. Cut off the noise around stocks you own, market’s timing, corrections or upswings etc. You have to completely shut this down and out. A month ago, people wanted corrections to buy are now scared to even buy at 20% dip because market is heading down. Well, most people in this market are traders. They pretend to be investors but will only trade their way in and out. They all come and say, we’re here for the long term while in reality, all they want is a quick buck and action.

So stop wasting time with any of them. My thumb rule is, I don’t talk to anyone who proves to me once that he’s a trader. You can only push me away once. Beyond that, I’m happy never talking stocks. Second, build a vision for the stock you own. Unless you can have a vision of what the company is going to be three years from now, you’ll never know when to sell or average more. As far as market timing is concerned, it’ll never be a practised art. You can never buy at bottom and sell at top, unless you’re trading on inside information, which anyways is illegal.

Second, you’ve to work on yourself. You can’t feel the magic of compounding only in your portfolio while your body erodes and you stop thinking. I have a firm belief that compounding works because 11 years ago, I was a lean thin guy who began to lift weights. Today, I’m totally different from where I started. The progress over days is glacial, though it all adds up and transforms exponentially. You can’t be a naysayer and win in life. I’m a big fan of Chinese Bamboo tree story and truly practice it. 7 years ago, while preparing for civils, I read my first book. Today, I’m reading almost 45 a year and still feel hungry. Warren Buffett reads over 300 pages a day. It all bloody adds up.

Most importantly- Think Big! There is nothing bigger than a profound vision. Unless you visualise yourself independent, rich and fit, you’ll retire at 60 in obscurity.

So unless you’re one of those who’re trying to make your lives better, hustling everyday in one form or another, investing is not for you. No man who made it big didn’t not start. The biggest investment you can make is in yourself. Unless you do, you’ll only age and grow old.