What is the right way to take a decision for investments or in life? Must read for all.

28^th June 2019

What is the right way to take a decision for investments or in life? Must read for all.

Greetings from Hitesh! To continue our education initiatives today we are sharing the most important and most affecting factor for failure in life and investments. In Geeta, chapter 4, slok number 40, Lord Krishna talked about this – SANSHAY ATMA VINASHYATI.

Most readers understand SANSHAY as DOUBT. They are 100% wrong. SANDEH means doubt. SANSHAY means indecision. Lord Krishna says the guys with INDECISION will die. Let us see what it means.

How NORMAL guys take a decision?

Mostly, they will not say YES or NO on the spot. 99% of the time they give below given 2 reasons.

1.  Let me think and get back to you /

2.  Let me talk to My Wife / My Husband / My Family Members / My CA / My Doctor / My Brother in Law / My Son in Law and N number of other people.

Thanks to these reasons – they can buy time to answer the other guy. Apparently, this looks logical that you should think before you take a decision. But, the biggest limitation of thinking in any area is that – YOU CAN THINK ONLY ON THOSE AREAS WHAT YOU ALREADY KNOW. Say I know about shares and shares market. But I don’t know anything about MEDICAL SCIENCE. So, if I have a heart problem and doctor suggest me that you need BYPASS SURGERY – how can I think about that? You may argue that you can take second/third/fourth opinion – but that opinion is also borrowed as taking a second opinion does not mean that I will get knowledge of MEDICAL SCIENCE. 

Another aspect of the above issue is – will I care for living more by following the doctor or waste time in getting Opinions if I have genuine Heart Problem?

So, normal people take an instant decision only and only when they are in a soup/tremendous fear of loss or fear of death.  

How the SMARTEST people take decisions?

They know what they don’t know and they don’t waste time in knowing what they don’t know. They don’t go for a second or third opinion. My study and experience with ULTRA HNI say that they are always with YES / NO instantly. They have no time to THINK!! No time to ASK!! They know WHAT THEY REALLY WANT? They operate out of SENSE of URGENCY all the time. NORMAL guys sense of URGENCY comes when they have HEART PROBLEM or some such major negative issues in their life.

Let me explain RATAN TATA’s way of decision making?

Post-retirement, he had done several investments in START-UPS with Rs.15 to Rs.25 Lakhs as initial funding. Now, is there any way in which RATAN TATA can be sure that this startup will see the light of the day? Will be super successful? Their promotors – mostly young guys with no track record – will fulfill their promises to RATAN TATA? What RATAN TATA knows is a simple thing – 95% of the startup fails. So, he invests in 10 start-ups and waits for only one to succeed. The one which succeeds will make up more than his total investments in 10 start-ups. If more than 1 becomes successful, it’s a bonus for RATAN TATA.

What is the TRACK RECORD of BUFFETT and RAKESH?

Buffett has followed his value investing theory for over 70 years now. If you study his portfolio of 215 stocks, he had in 1992, only 15 stocks made him the RICHEST person in the world. He had followed all fundamental analyses/promoter study/market study/promoter meetings and things like that before investing. STILL – he was successful in 15 stocks only.

Rakesh, the Indian BUFFETT had only 4 stocks out of 33 stocks to make him what he is today. He had also done due diligence and things like that before investing. Recently, DHFL took him for a ride.

What these guys did was increasing the stakes in the stocks which were moving and that made them super successful.

What is the point I am making with the above examples?

Ratan Tata is an example of investing without the knowledge and how he manages the risk of the same.

Buffett and Rakesh are examples of full knowledge before investing and then changing the investment pattern based on the performance of the companies. This is their way of managing their risk.

These guys know that there is nothing like SURE SHOT / ASSURED RETURN in life and in investments. Lord KRISHNA said this in single slok –

Karmanye vadhika raste, Ma phaleshu kadachana
Ma karma phala he tur bhuh, ma te sangotsva karmanye

Your right is to do KARMA and not in the results.

If above slok is right, then HOW COME RICH GUYS APPEAR to be MORE SUCCESSFUL in their decision than NORMAL GUYS – because all are doing KARMAS?

Rich guys are clearer with their intentions and purpose / what they want? Why they want? They are not shy of telling NO/ DON’T KNOW/ PLEASE HELP ME with this. They are not pleasing all kind of guys. They are focused on RESULTS. STEVE JOBS was considered the worst boss and he had admitted that – I am not here to please my people; I am here to make a great product. This straight forward thinking is the root of APPLE’s success in creativity and design.

90% of the times – NORMAL guys don’t know what exactly they want? This may look a very toll claim but this is the fact. When you don’t know what you want and when you have to make big payments / take a big risk – you will say – LET ME THINK!! Their search of 2^nd/3^rd/4^th opinions is nothing but look out for CONSOLATIONS or support them that they are right. But with waiting for others approval or consolation – your opportunities will not come again.

Have you seen most guys come to the market when there is TEJI? This is the biggest proof of NEED FOR OTHERS APPROVAL before investing. If all are investing, they can’t be wrong and when all are right – I am also right in investing in the rising market!!

NEED for approval is proof that you don’t know what you really want? When you don’t know what you really want – Existence can’t help you. And this is the reason that NORMAL people remain NORMAL.

That’s why LORD KRISHNA says - SANSHAY ATMA VINASHYATI

What ANTHONY ROBBINS asked me way back?

Do you want to die with DREAMS for NEXT LIFE or you want to die with MEMORY of fulfilling your dreams in this life?

If you also want to fulfill your dreams (provided you have them with clarity), you will surely take a risk, you will say YES or NO fast/ you will not wait for approval of others.

What NEXT?

From Monday, July starts. Since 1995, Market has never come down in JULY. It has moved up by 5% to 24% in different years compared to JUNE LOW.

So, take fast action and contact us.

Have a GREAT WEEKEND.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.