How WARREN BUFFET became Most Successful Investor by NOT TRYING TO BECOME?

Friday, 14 December 2018

How WARREN BUFFET became Most Successful Investor by NOT TRYING TO BECOME?

Greetings from Hitesh! Can you become successful investor without trying for that? It sounds illogical. But this is the fact of BUFFETT. All my understanding of his annual shareholder letters and his interviews lead me to think that he become the most successful because he didn’t try. Let me share my understanding with you all.

What an average investor does while investing?

He will do study of the investment idea as per his skill sets and mindset. He will ask for the target and the time it will take to hit that target. He will prefer his investment idea to hit the upper circuit from the moment he buys. He has lots of expectations for his investments to perform. He invests for PROFIT only. He invests for SUCCESS and most of the time he ends up being a loser.

The most seasoned investor does the 100% reverse. Let us see how Buffett invests?

While investing he focuses on making less and less mistakes. He invests in the businesses which he understands well. He says, He is okay if market closes for 10 years after his investments.

His partner MUNGER says he will not go to a place where his death is awaiting.

If you think on above sentences – you will find that his total focus in doing right things from the day one. He has made tons of mistakes, but he has not repeated the same mistakes again and again. Moreover, he does not have any expectation from the market (READ  - he is okay if market closes for 10 years after he invests).

He invests after detailed study. He waits for his price to come. Once he buys, he leaves the prices to the market. He plans not to fail in the market rather than to succeed in the market.

This is an approach of SURRENDER to the market.

Indians are blessed with RAM / KRISHNA / MAHAVIR / BUDDHA and many great souls. It would be very difficult to find the guys who 100% follows their recommendations in PRACTICAL LIFE.

Buffett calls himself an AGNOSTIC. He does not believe or dis-believe GOD. But all his life is a proof that he is living based on the principles of GITA.

We often quote the famous slok of GITA –

The verse is—

कर्मण्येवाधिकारस्ते मा फलेषु कदाचन। 

मा कर्मफलहेतुर्भूर्मा ते सङ्गोऽस्त्वकर्मणि॥ २-४७

In Roman scripts—

Karmanye vadhikaraste Ma Phaleshu Kadachana,
Ma Karmaphalaheturbhurma Te Sangostvakarmani

If you want to see the living example of the above slok – then study BUFFETT way of working and investing.

Why he is so successful despite he is not asking for the same?

He has left everything to GOD(MARKET). He has 100% surrendered to market once he has done his investments after proper study. This is the main reason for his super success in the market.

What NEXT?

We have a famous example of DHIRUBHAI spending Rs.1500 Crs extra in JAMNAGAR REFINERY to make it survive the earthquake of 8.5 in Richter scale. He invested not to fail his refinery and he became successful in year 2000 when the earthquake hit Jamnagar at 7.5 Richter scale.

It is irony that we plan only for success. We should plan not to be a failure. The day one plan for not failing – existence will make you successful by default.

At DESTINY MANAGEMENT, we focus holistically on all aspects and NOT TO FAIL is the main among them. If you like our approach, please contact us.

Have a HAPPY WEEKEND.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.