How much Onion you will buy at Rs.100 Per Kg? The most important Investment Lesson

 24^th January 2021

How much Onion you will buy at Rs.100 Per Kg? The most important Investment Lesson

Dear Fellow Travelers,

Namaste! Our last post was a shock to many successful readers. Many did not think the way we described Super Successful People. But that is the fact. As Shiv Khera Said – “Winners don’t do different things, they do things differently.” So, those who are already successful, they have food for thought to elevate their life.

Today, I will deal with the most important investment lesson. But before that let me share the message I have got from my learned friend and leading Mutual Fund Distributor and Investment consultant in Calcutta. He is a good friend since 2004. I am just quoting his message verbatim. Just read.

BEFORE INVESTING KNOW THIS...

When onions are priced at Rs100/kg in the market, would you buy 10kgs in 1 stroke. No...even if your wife urgently needs it

You would buy 1 or 2 kgs, and tell your wife to manage the kitchen for the time being.

Use the same strategy with your investments too!!

So.... SIP करो मस्त रहो स्वस्थ रहो।

 If you also agree with the above IDEA – then I can tell you with a guarantee – you don’t know what is Investments? Yes, you don’t know. Read the facts.

Onion is a NEED. Investment is a CHOICE: -

Investment is ultimate independence. It is a power very few have acquired. It is not a NEED. You don’t have to INVEST to live. People without investing have also lived a successful and happy life.

If my food habits need Onion – I will buy at Rs.200 also. In the recent past, I had paid Rs.140 per kg in Mumbai. It is my NEED. It is my habit to eat food with Onion. I can’t do investing based on NEED.

Timings: -

Wall Street and Dalal Street experts are unanimous when it comes to timing the market. All have brainwashed systematically to Masses that they can’t TIME the market. This is the biggest lie.

Doing SIP is like advising a couple who wants to have a kid to have regular Sex, someday the wife will surely become pregnant and they will have a kid. 99.99% of the child take birth this way only. Have you seen how mediocre our kids are?

In India we have a concept of Garbhadha Sanskar. Here the couple is advised to come together at a proper time so that they can have a powerful child or the kind of child they want to have. Say a King would want to have a kid who can run the kingdom or a Guru wants to have a kid who can be wise and intelligent. We had a detailed system of timings for a couple from mating to delivery of a child.

Looking at the Pruthvi’s horoscope, I can tell you for sure that Ambani Family would have followed the Garbhadhan Sanskar. I know quite a few well-informed families who have followed all the rules to have a powerful kid. Their kids are really superb and they are different from day one.

So, Investment can't be done without proper timings. 

Another perspective on – You can’t Time the Market.

If you want to have a happy married life – you don’t have to understand all the men or women in the world. That is impossible for any individual. But to understand your spouse is possible and simple.

Same way – to do investments – you don’t have to predict the market or time the market. You just have to time your investments in a particular company. This is Simple and this is 100% possible. In last March when Reliance as around Rs.900 we had given a bold call in our blog to buy. In October we had asked to sell around Rs.2230. Now, the market has moved up but Reliance has not moved up. All I am saying – you need one idea to change your life and not the market!!

A normal person when he buys the property - he worries about the price of their property/location and other details. Does he worry about the Property Market? The same principle you have to apply while investing. 

Can a Results be GREAT if you have not followed the Procedures?

There is a misconception between two words – Simple and Easy. Most guys understand Simple as Easy.

Investment is SIMPLE but not EASY. You need to follow the due rules/procedures and principles to spot a good investment opportunity. You need to have a lot of patience to enter into it and a lot of patience to sell them. This is SIMPLE. Not Easy.  

Just because this SIMPLE is difficult for you or you don’t know or you have not been trained for the same – you are advised to follow EASY way. Do you remember my joke about Vasectomy in last posts?

The underlying lie in SIP is – you don’t have to follow procedures or principles of Investments but you will still get good returns. This is not correct.

Now comes the Biggest Mistake in the above example: -

If buying 10 kg Onion at Rs.100 is a mistake, then buying even 1 kg Onion is also the same mistake.

It’s like saying – stealing of Rs.10 is okay but stealing of Rs.100 is a Sin. This is Hypocrisy. You are not honest with yourself here.  

If you are not Honest with yourself to start with, to expect other guy or market to be honest with you, is a fool’s paradise.

Wrong is Wrong and Right is Right.

Concept of Average: -

Underlying assumption of SIP is in the long term – your returns are averaged out. So why don’t you start averaging from day one.

Let me share you a real-life example of a person who invented the concept of Average. I don’t remember his name now but this is his personal life example.

He had three kids and they had to cross the river. Being a mathematician, he did an average of 5 people – he / his wife and 3 kids. Their heights in fts were 6 / 5 /4 /3 and 2. Average will come to 4.  So, he found out the place where the average water was at 3 ft so they all can cross the river. What happened was his 2 kids whose heights were 3 Ft and 2 Ft got submerged in the water!! So, taking a decision on average is full of danger.

What is an Investment in Reality?

Investment is a CHOICE. It’s a love in the purest form. It’s an ultimate Independent of a person having spare money. A truly independent person can only fall in love with his investments.

Believe me or not – if you have loved somebody or something from within – then it will become the results by itself. When Buffett says – he is okay, if the market closes for 10 years after his investment. This is a statement of DEEP Love for investing.

Let me make a bold claim or give you assurance – if you have done any investments out of independence and love – you will get good returns on it without fail.

What Next?

If you consciously don’t learn the fine art of investments – you will have to compromise your life with an Average Return.

Make your choice.

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

Live With Passion…Invest With Passion.

Hitesh Parikh