If your investments are not in profit from day one, it will never be in profit in future

 

30^th October 2020

If your investments are not in profit from day one, it will never be in profit in future

Dear Fellow Travelers,

Namaste! The last 5 posts were dedicated to Gold / Bitcoin and investing. The best investment lesson which I have learned and I practice is the above - If your investments are not in profit from day one, it will never be in profit in future. Most seasoned investors also fail to follow this principle sometimes.

I am sure most readers will be puzzled by the above statement. They buy something to sell at a higher price tomorrow or in the future. For them to be in profit at the time of buying is a little bit confusing. Let me give you good news – Billions of Dollars are not invested in some future profit possibilities. They are invested because they are making a profit NOW.

Let me share some example and you will be clear.

Mother: - Becoming a mother is the best profit for a woman. Her kid becomes a Doctor / CA or PM is not a profit for her. Unless you are clear with this concept – you will not understand where I am coming from.

Amazon: - There are companies like AMAZON. It was started in 1994 in a garage. Went public in 1997. It was said at the IPO time that this company will be in a loss for the foreseeable future due to the way they are going to work. This year company made a profit of USD 5.2 Billion. It was launched with the objective of changing the purchasing habits of the masses. They achieved their vision. It took 25 years but the VISION of JEFF was clear from day one. So, he was in profit from day one.

Buffett: - He buys a share that has an intrinsic value of Rs.100 at Rs.70 or Rs.50. The embedded value of Rs.30 or Rs.50 is his profit from day one. It may take some years to realize that profit. He is okay with that.

Your Body is the best example of profit from day one: -

Gita was prolonged because ARJUN was not satisfied with the SANKHYA knowledge given to him in 2^nd chapter. He was told about KARMA YOGA / GYAN YOGA and BHAKTI YOGA.

1.  I have seen some people can’t sit without action. They want to do something at all the time. I have seen traders who want to trade something or the other all the time.

2.  I have seen some people keep on thinking/applying logic all the time. They are the ones who search on NET for the best DEAL or the cheap airline tickets and things like that. They may not do anything after knowing everything as their goal is to satisfy their curiosity only.

3.  I have seen some people are full of feelings. They are BHAKTS. They have a lot of love for their GOD or the people around them. These people are the most near to GOD thanks to their pure heart.

We all have the above qualities in different proportions and some qualities will be more active in certain situations.

What is SANKHYA KNOWLEDGE?

You are SOUL and you are just watcher of everything. Be a witness and you will get MOKSHA or NIRVANA or KAIWAL GYAN. You don’t need to waste time behind KARMA / GYANA or BHAKTI.

The body is also useless without a Soul. The soul is the profit or main cause of the body. We call BODY without a soul a DEAD PERSON.

Same way your investments should have SOUL in the same. You may take action/think or love your investments but without SOUL you will be a failure. You can’t put SOUL in anything or anybody. Either it is there or it is not there.

How to apply this concept in investments?

Be like Mother if you are a love-oriented person. Be like JEFF if you are a highly intellectual kind of person. Be like BUFFETT if you are ready to work hard. You can mix all of them in different proportions also depending on your personality. But make sure the company has a SOUL in which you want to invest. Here also your SELF KNOWLEDGE will be the key for your success.

What NEXT?

In future, we all are dead. So, don’t wait for Future profit. Make your present profitable first.

Have a HAPPY WEEKEND.

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

 

Live With Passion…Invest With Passion.

 

 

Hitesh Parikh.