How Smartest of the Smart Investor – BUFFETT deals with the duality of Profit and Loss?

 8^th June 2022

How Smartest of the Smart Investor – BUFFETT deals with the duality of Profit and Loss?

Dear Fellow Investors,

Namaste! Our last post on RRR was a super hit like the movie. Thought it was not on Movie. Thanks, dear readers for your time and responses. It was a post for Matured investors. Today we are dealing with the top secret of the most successful investor of our time. This is also for the really mature guys. Only they will be able to learn from the same.

How does duality impact our choice?

Life and Death / Profit and Loss / Respect and Disrespect / Good and Bad / Happiness and Unhappiness / Healthy and Sick / Rich and Poor / Pass and Fail / Advantage and Disadvantage / Astik and Nastik / Love and Hate. The list of dualities can go on.

All normal people will choose – life over death/profit over loss / good over bad and things like that.

A normal mind is designed to go for the GOOD SIDE of anything. All they want is the SUKH at the end over the DUKH. All their life journey is focused on the search for ELUSIVE SUKH.

When they study – they want good grades. After studying a good Job or profit-making business. After that, they want a beautiful or handsome partner. After that they want Kids. Then tons of money. World travel. Now, if you ask such a person at the age of 60, did you get your happiness 100% by going through all – he may say he was happy or he was unhappy. But look at his life in the current moment  – he is still looking for something else to be happy. So, he was not really happy to start with, irrespective of his answer. 

How does Duality impact our life?

We have seen the choices we make in the above paragraph. Now the real problem starts. Life comes with death. Health comes with sickness. The profit comes with the loss. Happiness comes with unhappiness. It’s a pair. You can’t separate one from the other.

It’s just that a kid is born today and he may die at 70. Both the events are the two sides of the same coin. But since there is a time difference of 70 years – we see it as a separate event and term it as a BAD event.

When we see it as a BAD – we have a negative reaction or fear of that event. When we have a fear, we want to run away from the same. We run pillar to post to avoid that fear or event but nothing can be done. You have to go through that pain.

If you have selected any one side – the other side will come without any doubt.

How BUFFETT kind of investors deals with the same?

They are aware of the same from day one. They don’t focus on profit or loss. They focus on the business. They also know that one day the chosen business will be out of the market. But they choose the business which has a longer product cycle. They are also not able to avoid the duality in totality but they save them from the pain of LOSS by not focusing on the profit and loss.

You can read the above again if you have not understood. Buffett kind of people do either of the two things – they transcendent the duality by focusing on the business or they accept the both together at the same time and bet in the market.

In either of the above case – they don’t get the happiness of the gain and when they are not happy in the first place – they don’t become unhappy when the stock gives them losses.

This is purely common sense but very few are ready to grasp the same.

What KRISHNA said in GITA chapter 2, slok 38?

सुखदु:खे समे कृत्वा लाभालाभौ जयाजयौ | ततो युद्धाय युज्यस्व नैवं पापमवाप्स्यसि ॥38॥

 

जय-पराजय, लाभ-हानि और सुख-दुख को समान समझकर, उसके बाद युद्ध के लिए तैयार हो जा, इस प्रकार युद्ध करने से तू पाप को नहीं प्राप्त होगा।

 

Look at the above advice from Krishna to Arjun. He is also saying the same.

When you go beyond Profit and Loss – all your focus is on the GAME and all your focus is on how to play the game in the best way. When you focus on how to play the game in the best way – 99% of the time you will be a winner. This is the beauty of the above advice.

Wish you all a very happy investing.

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

Learn a Lesson. Live with Passion & Invest with Reason.

Hitesh Parikh.