How to TOP your investment performance by applying 4 Noble Truths of Buddhism to your investments?

25th February 2020

How to TOP your investment performance by applying  4 Noble Truths of Buddhism to your investments?

Greetings from Hitesh! Buddhism became the third largest followed religion in the past 2500 years without doing forceful conversion of the people or manipulating them with money. The secret lies in the 4 fundamental principles given by BUDDHA. He was such a smart that what he said could not be denied by the so-called NASTIK or AASTIK people. Both had to agree to whatever he had said in his 4 principles.

I have applied them in investments along with BUFFETT principles and I see the results are amazing. This post can be a smart way to learn the investment style and thought process while you invest.

We will take each NOBLE TRUTH along with the learning from an investment perspective.

1.  Life is suffering. It has THREE ASPECTS. First, there is suffering. Suffering should be understood/accepted, and suffering is accepted.

See the beauty of the above principles. Life is SUFFERING. Can you deny this? But the principle goes further that you must understand the same and accept the same.

On the same line – I say Investment is LOSS.

Investment is Loss. I am sure as an investor you would have faced losses sometimes and profit also. But when I say the investment is a loss, you may find it difficult to digest. Just reflect on this. What happens when you invest? You park your fund in some shares/gold or land or anything you consider as an investment. It means the money will not be used if they remain invested in those assets. The price may increase, and you may feel notional profit or price may decrease, and you may feel the notional loss. You may use the dividends/rent or interest for your day to day expenses in old age. But total money or asset remains untouched in most cases till you die. In this way, your investment becomes a loss for you. If you die, your next generation may use them/encash them or sell them.

But for you, it is a loss. Today we think WARREN BUFFETT is the number one investor and he is a billionaire. But the FACT is he is not going to use this money. At the most, he is a protector of this wealth. For him, this total wealth is a loss.

2.  There are causes of suffering. There is an origin of suffering due to attachment to desires. Desires should let go of and desire has been let go of.

Just reflect on this. Your suffering is coming from your attachment to your desires/goals/targets and dreams.

   When we apply the same in Investments - Your desire to make instant profit / your desire to see prices going up, up and only up is the major cause of loss to you. The desire should go, and you should realize that desires have gone.

Buffett says in his own style – “I am okay if the market closes for 10 years after my investments.” This is a lack of desire from instant profit.  

3.  You can end suffering.     There is an end to suffering. The end of suffering should be realized. The end of suffering had been realized.

When you know the root cause of your suffering – you can end them instantly.

The same way I say - You can end your losses. Once you realize that the cause of your losses is your desires and you yourself can let go of your desire. Once your desires are gone, you cut your losses immediately.

4.  You can move towards HAPPINESS.     There is an eight-fold path toward happiness. The path should be developed. The path has been developed.

Buddha gave 8 steps for the permanent happiness and they are – Right Understanding / Right Intentions / Right Speech / Right Action / Right Livelihood / Right Effort / Right Mindfulness and Right Concentration.  

On the same line, I say - You can move towards profit by following the 8^th fold path.

1.  Right understanding and right intentions lead to knowledge that the goal of the investment is not to make money but to test one’s skill set to go right in predicting the market and share prices behavior. The focus should be on SKILL sets and not on the price movement. In GITA this is called – YOG KARMSHU KAUSHALAM. Expertise in the KARMA is the YOG. This is a part of WISDOM. As you improve your skill sets – the profit will come automatically. You don’t have to go for it or expect it. Buffett has done the same.

2.  Then comes the MORALITY by following RIGHT SPEECH / RIGHT ACTION and RIGHT LIVELIHOOD. Look at BUFFETT, he lives the simple life despite being the richest and the most successful investor we have ever seen in the history of mankind. He follows the MORALITY of money management.

Today I see a guy who has just started a career – wants a car / flat and foreign tours. He wants the best of everything from day one. Since his income will not permit – he will go for a Loan / Credit Cards and other short cuts. This becomes the cause of STRESS.

3.  Then comes the last three – Right Efforts. Right Mindfulness and Right Concentration. Look at BUFFETT he has pledged to donate his 90% of the wealth to the NEEDY GUYS. Now, his total loss has become profit because he is making a difference in millions of people’s lives with his skill of making money. In GITA it is known as LOK KALYAN.

Unless and until our goals are not aligned with the larger good / nature or existence – end results will never by HAPPINESS.

What NEXT?

The above four are a must to reflect on life and investment behavior. I have personally found them very useful to me. I suggest you try them with an open mind and see the difference in your life and investments.

Have a great investing experience.

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

Live With Passion…Invest With Passion.

Hitesh Parikh