Consolation V/s. Truth in Investment and Life

21 April 2015

Consolation V/s. Truth in Investment and Life

Greetings from Hitesh! Our last post on Honesty has been appreciated like anything. It has become the most viewed article so far on our blog. Today I am taking up equally important issue from investment perspective.

Consolation:-

1.  In last December when my mother left for heaven – I received many calls and messages of consolations. I am really thankful to them for their efforts to consol me and my family in the time of grief.  However, 99% had asked me this question – was she sick? Was she under some medication?

2.  Many times my clients ask me – you give 10 calls and I always end up investing in the 3 calls which do not perform? Is my luck bad?

3.  When Rape occurred on 16^th Dec.,2012 in Delhi, people were talking about how come she was out at 12 in the night?

4.  In May 10^th and 12^th results will be declared. Many will top it and many will fail the same. Those who fail – will find out the reasons for the same.

5.  There is a joke about Indians that if the Electricity goes, Indian will go out of the house and if he sees that all others are also not having power, he will fell relaxed and  get inside his house.

If see all these events – you will see that people will try to find out the reasons / explanations/ theories in support of the event. E.g. if somebody is sick and he or she dies – it’s okay!! You are losing in the market because your time is bad. If you go out late night and get raped – it’s okay. You did not take tuitions with so and so and you failed. It’s okay not to have power, if all others are also not having.

I am sure you would have observed the same in and around your life.

When you console – you forget the main events and convince yourself that why particular event should have happened to you or in your life or in society. You justify the same.

What happens due to that?

Say a death has occurred – now you are grief stricken / you are sad.....if you accept this sadness as a part of your life – acceptance of death will come sooner or later. But if you console yourself – you will never be able to reach to the Ultimate TRUTH. You are going in the other direction due to consolation business.

How does this affect your investment performance?

Say market goes down by 20% and your portfolio is down by 10% - rather than looking at your loss – you will feel happy about it. This is one of the chief reason due to which normal investors remains normal.

Market was volatile and your portfolio is at same levels. Now you feel happy that your Capital Remained intact!! It’s okay if it did not move up but it has not gone down also!! Did you invest in the market to keep the capital at the same level?

Most successful investors look at the absolute return or loss. When they look at the truth – they can develop the strategy to increase the return next time or decrease the loss next time. But you have to face the reality for the same. Consolation takes you away from the reality and truth. When you go away from reality – you lose the Honesty and when you lose the honesty, you will not get happiness in life and investments.

What is my call?

Most people start their journey towards success with an expectation to reach to Happiness some day. But when you go away from TRUTH and HONESTY – your success will be Empty.

My investment strategy is based on TRUTH and HONESTY with myself and with my clients. The same is reflected in performance of our calls.

Have a Great Day.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.