Consolation V/s. Truth in Investment and Life
21 April 2015
Consolation V/s.
Truth in Investment and Life
Greetings from Hitesh! Our last post on Honesty has been
appreciated like anything. It has become the most viewed article so far on our
blog. Today I am taking up equally important issue from investment perspective.
Consolation:-
1. In
last December when my mother left for heaven – I received many calls and
messages of consolations. I am really thankful to them for their efforts to
consol me and my family in the time of grief.
However, 99% had asked me this question – was she sick? Was she under
some medication?
2. Many
times my clients ask me – you give 10 calls and I always end up investing in
the 3 calls which do not perform? Is my luck bad?
3. When
Rape occurred on 16th Dec.,2012 in Delhi, people were talking about
how come she was out at 12 in the night?
4. In
May 10th and 12th results will be declared. Many will top
it and many will fail the same. Those who fail – will find out the reasons for
the same.
5. There
is a joke about Indians that if the Electricity goes, Indian will go out of the
house and if he sees that all others are also not having power, he will fell
relaxed and get inside his house.
If see all these events – you will see that people will try
to find out the reasons / explanations/ theories in support of the event. E.g.
if somebody is sick and he or she dies – it’s okay!! You are losing in the
market because your time is bad. If you go out late night and get raped – it’s
okay. You did not take tuitions with so and so and you failed. It’s okay not to
have power, if all others are also not having.
I am sure you would have observed the same in and around
your life.
When you console – you forget the main events and convince
yourself that why particular event should have happened to you or in your life
or in society. You justify the same.
What happens due to
that?
Say a death has occurred – now you are grief stricken / you
are sad.....if you accept this sadness as a part of your life – acceptance of
death will come sooner or later. But if you console yourself – you will never
be able to reach to the Ultimate TRUTH. You are going in the other direction
due to consolation business.
How does this affect
your investment performance?
Say market goes down by 20% and your portfolio is down by
10% - rather than looking at your loss – you will feel happy about it. This is
one of the chief reason due to which normal investors remains normal.
Market was volatile and your portfolio is at same levels. Now
you feel happy that your Capital Remained intact!! It’s okay if it did not move
up but it has not gone down also!! Did you invest in the market to keep the
capital at the same level?
Most successful investors look at the absolute return or
loss. When they look at the truth – they can develop the strategy to increase
the return next time or decrease the loss next time. But you have to face the
reality for the same. Consolation takes you away from the reality and truth.
When you go away from reality – you lose the Honesty and when you lose the
honesty, you will not get happiness in life and investments.
What is my call?
Most people start their journey towards success with an
expectation to reach to Happiness some day. But when you go away from TRUTH and
HONESTY – your success will be Empty.
My investment strategy is based on TRUTH and HONESTY with
myself and with my clients. The same is reflected in performance of our calls.
Have a Great Day.
Follow me on Twitter @hiteshmparikh Or
on Whatsapp - +91-9869425399.
Live With Passion…Invest With Passion.
Hitesh Parikh.
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