How to evaluate your profit or loss in Investments and Life?

 

11^th April 2021

How to evaluate your profit or loss in Investments and Life?

Dear Fellow Travelers,

Namaste! We are in the lockdown kind of situation again. Small traders, business people, and job goers are crying foul over these situations. They are seeing this as BAD LUCK to have a lockdown. What is your good luck or bad luck in reality? In simple words – how to evaluate your Profit and Loss in Investments and Life? Let us understand with a Chinese Story.

Old Farmer and Old Horse: -

In the olden days there lived a very poor and old farmer. He had some land and an old horse. He was doing farming and all other transportation work on the horse only. He was barely able to earn his bread.

One day Horse ran away. His neighbors came and expressed their sorrow over the loss of this horse. They tried to console the farmer over his BAD LUCK.

The farmer was sitting quietly in the home. He said whatever was to happened has happened. He asked all of them - how to decide whether it’s good luck or bad luck?

After some days, the horse came and brought a group of wild young horses with it. Neighbors became happy with the Good Luck of the farmer. They said – you are lucky to have got so many horses FREE of cost.

This time also Farmer said whatever was to happened has happened. How to decide whether it’s good luck or bad luck?

Farmer’s young son was trying to ride the wild horse one day. He fell down and broke his leg. Again, neighbors came and expressed their sorrow over the BAD LUCK of Farmer. But as usual – The farmer was quiet and asked how to decide whether it’s good luck or bad luck?

After some days War was announced in the country and it was mandatory for all the young men to join the ARMY. Since the son’s leg was broken, he was not eligible to participate in the war. This time also Neighbours came and expressed their happiness on the Good luck of the farmer.

But as usual – Farmer was quiet and asked how to decide whether it’s a good luck or bad luck?

How Normal investors behave in the market?

They become happy when the prices of their shares move up. They become unhappy when the prices of their shares moved down. Some are so obsessed that they become happy or unhappy minute to minute with the movement in the prices.

They become happy when they earn good profit in their daily trade. They become unhappy when they suffer losses in their daily trade.

Their perception of profit and loss keeps on changing with the price movements. Thanks to this attitude, they are never happy in their life and they are the most unhappy when they die.

What is a way out?

Farmer has already shown us the way. He was quiet. He asked – how to decide whether it’s Good Luck (profit) or Bad Luck (loss). He was just witnessing the event without getting judgmental about it.

Last week we had talked about Warren Buffett's portfolio underperforming the market benchmark for the last 13 years. Have you seen Buffett going mad on his portfolio? Have you seen he sold all of his brick-and-mortar company shares and bought the new technology shares? He is just witnessing the market. Since he is a Watcher – he is not getting upset with the non-performance and his happiness and mental serenity is intact.   

When you are unperturbed with the present market price movements – you have a capacity to think beyond the present market movements and wait patiently for next move of the market.

What is the concept of BHAGYA in reality?

Bhagya is a 100% Indian word and the most commonly used. I have seen the majority of the people don’t know the meaning of this beautiful word. The real meaning of this word is – “whatever has to happen will happen.”

If you understand this meaning – you will become WITNESS fast in all the events. When you witness without profit and loss attitude – the market reveals to you its true motive and once you catch that – you are given ABUNDANCE by default.

See the farmer got a group of Wild Young Horses / his son did not have to go for a war. Can you see his profit?

What NEXT?

If you have not made tons of money so far in your business or investments – this story may teach you the missing links in your attitude.

Have a Great Sunday.

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

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.