MODI’s interview with RAJAT SHARMA proves that he is a SHREWD INVESTOR. Let us learn from him.

05 May 2019

MODI’s interview with RAJAT SHARMA proves that he is a SHREWD INVESTOR. Let us learn from him.

Dear Fellow Travellers,

Greetings from Hitesh! Yesterday, Mr. Modi gave the most watched interview and it has many learning lessons for all of us in general and for investors in particulars. I will deal with each of the lessons, as per my understandings. You can add or delete as per your own understandings.

1. We are normal human being and we have made mistakes as a normal guys would.

Whether you are at the top or middle or bottom of your career or life, you will remain a human being only. So, you are prone to make mistakes as other humans. Modi has mentioned the same two times during the interview that he too has made mistakes but his intentions were good.

All investors and traders should accept the mistakes they have made. When you accept that, you become open to learn from them and not to repeat in the future. My GURU always says – Always MAKE NEW MISTAKES. This is possible only and only if you have accepted your old mistakes.

2. Never judge the politician by PROFILE

He was asked how he could deal with the TRUMP or other guys. He said, I never read their profile and go with the set mind to meet them. I always keep my mind open while I meet them and I rely only and only on my experiences.

This is golden advice for investors. Most investors are brainwashed about equity investments by vested interests. They know that if you invest your money directly into equity and make tons of money, you will never give your money to them for management and they will have no business. So, always have your own experience in all the areas.

3. Personal Relationships   

He has developed personal relationships with most of the leaders in the world. 1^st lady of Argentina made tea for him. Trump spent 9 hours in showing him a White House, including his room. Putin invited him for a dinner meeting of 50 minutes and they talked till 4 am in the morning. Singapore guys took him to small south Indian restaurant.  

Every investor must have good personal relationships starting with FAMILY Members. Good personal relationships take out the stress when you have to deal with them professionally and you can blindly trust them. When you have trust on the opposite guys, your 90% of the work is done before it starts.

4. RASHTRA NITI V/S. RAJ NITI

Modi made a difference when he gave a priority to the country over his own party or he remaining PM or not. When he focused on the country – he focused on what the county has. He talked about the legacy of AYURVEDA / YOGA and other unique aspects of Indian culture when he was meeting the world leader. He also took some tough decisions which affected his popularity in the initial period.

The golden rule for the investor is to do the things which he dislikes the most. E.g. reading balance sheet of the companies / reading other materials related to the investments or reading biographies of the investors. Most investors are ready to listen to the MEDIA guys but they are not ready to invest that time in reading themselves and doing their own study. When you do things you dislike, you get the things which you like. Time and again successful people have proven that. Modi is giving us the proof in front of us.

Focusing on RASHTRA NITI means to focus on what is your overall priorities in the present and future time. Most guys would be happy to earn Rs.5000 in a day trading. That 5000/- may give you some KICK or some excitement to go to share market next day. But, that 5000/- has never made somebody WEALTHY so far. So, decide whether you want to earn your daily expenses or you want to become wealthy – this will be your RASHTRA NITI.

5. Judging by the past TREND

Most MEDIA / Opposition Party / Pakistan ARMY and Indian Citizen were judging MODI from their experience of the past government. Modi gave surprise to all and sundry with his out of the box thinking and bold actions. He broke the image that people can take GOVERNMENT for granted. He made the CORPORATES to sell their assets or companies to pay up the BANKS. He gave a fitting reply to PAKISTAN. It was said that 12 missiles were deployed on PAKISTAN when our pilot was captured by them. They released him on the same day. This was not imaginable in the past.

Investment success also requires to think out of the box and to take bold steps. When company prices are down due to some other reasons – it takes a lot of guts to buy those shares. BUFFETT had done with AMERICAN express. Rakesh added DHFL in the recent fall. Unless, you have done your own study, the courage will not support when the prices are going down one way.

6. Trusting the other guy

He narrated the total incidence of lending to Pakistan on the spur of the moment on the invitation of the NAWAZ SHARIF and sitting in his helicopter without following the usual protocol. He trusted the other guy fully. This has paid him reach dividends in the form of global image, though the Pakistan Army did the backstabbing.

As an investor, you need to trust the promoter or management. They may cheat you. Rakesh was sharing his example of giving Rs.175 Crs. to A2Z Maintenance company promoters and they cheated him. Recently, PORINJU was taken for a ride by LLOYDS management. Always remember that CHEATING is possible at any stage in life and with big or small investors alike. There is no rule that RAKESH can’t be cheated because he is big or too smart. So, be ready for the same and learn from the same. We have seen the example of SATYAM in INDIA and ENRON in the USA in the past.  

7. Gratitude

He was thanking 130 Crs of Indian population for giving him majority for the first time after 30 years. Time and again he keeps of thanking all of us for giving his party a majority. He said that this time he was not doing any publicity. He was just going to all the towns to thank them for giving him the vote in the past. All the successful people have this quality of gratitude towards other people / GOD or Market.  

Buffett always says his success is due to his birth in the USA. As an investor, we must be thankful to all the people – good or bad and Market for giving us the opportunity to learn/earn and make us wise.  There can’t be any success without an attitude of GRATITUDE.

What MODI winning the 2019 election will indicate for investors?

India and Indian people are in SAFE hands. We have seen the bottom in the past in terms of cultural and financial poverty during other governments time. But now, India has got up. It will start walking and running in the sphere of ECONOMY/TECHNOLOGY and all the fields we can think over.

In Sep., 2012, we had given a bold prediction that India will be a super power between 68^th birthday to 86^th birthday. 2014 was 68^th birthday. 86^th Birthday will be in the year 2032. In the last 5 years, we have seen a sea change in terms of our world image and grassroot level economic reforms. I see best of India is yet to come.

If you are investor or planning investment – India will be the best destination for coming 13 years. If you are NRI, I would suggest park your funds to India and your generation will bless me. We have a track record of going right in our calls time and again. So, don’t underestimate this advice.

If you need help in Investing or dealing with your personal and profession issues, you can take our help.

Have a GREAT SUNDAY.

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Live With Passion…Invest With Passion.

Hitesh Parikh.