Important Investment Learning from the movie – Drishyam -2 on suffering losses.

 

12^th April 2021

Important Investment Learning from the movie – Drishyam -2 on suffering losses.

Dear Fellow Travelers,

Namaste! A few years back we have enjoyed the movie Drishyam acted by Ajay Devgan in Hindi Version. The sequel to that has come as Drishyam-2 in Malayalam acted by Malayalam superstar Mohanlal. The movie is suspense and gripping. Those who love suspense movies must watch it.

Story of the movie: -

Mohanlal knows that one day police will find out the Body of the murdered kid and they will grab his wife and daughter. To save them, he starts thinking about what to do in case the police find out in the future?

He takes all the steps for the 6 years. During this time – The police are also taking one step at a time to reach the truth. Ultimately – the police find the body below the police station and take the Mohanlal and family into custody.

How Mohanlal outsmarts the police this time also is the crux of the story?

The question is how to suffer losses in your life and investments?

In the first part – he outsmarts the police. But was he happy after that? His daughter was always afraid to see the police. She was going through psychological counseling and other treatments. His family was always under some kind of fear. He was also busy preparing for the next move of police any time in the future. He spends lakhs of rupees and time to avert them. Can’t we call this silent suffering?

Had the police caught the daughter for murder in the first part – she would have gone to jail and the family would have suffered immediate pain. But over the years they would have accepted the fate of the elder daughter and come out of the pain. He would have saved his mental and material energy spent in preparing against the next move of the police.

How Buffett and the smartest of the smart thing when they suffer the losses?

Last year Buffett wrote down the total amount of USD 11 Bln as losses in one stroke. He purchased Precision Castparts (PCC) looking at the potential in the Aerospace industry. But when the industry started facing losses due to COVID – he booked total loss without wasting time. Early 2020, he sold Airlines shares booking USD 5 bln losses. Later on, when the COVID situation came under control in the USA – they moved up. But Buffett got out in one stroke.

During note-bandi – normal people gave old notes to their relatives and friends to deposit into their account. The idea is that they will deduct some 10-15% and give them the balance over a period of next 6-12 months. The smartest of the smart booked the immediate losses of 40% and took the new notes. Many normal people lost 100% as they could not cover up the new notes from their friends and relatives.

All Losses have two aspects – Time aspect and Intensity aspect: -

In the movie – Mohanlal and his family were suffering TIME ASPECT of the losses. They saved from the police one time. Then they prepared for their next move and then they saved themselves a second time. They remain in pain for 6 years. They were suffering in TIME WISE. Even after the second win over the police – they can’t sleep peacefully for future.

Buffett suffered intensity-wise – USD 11 bln at one stroke.

Most normal people love to suffer TIME WISE only. They waste their time and energy in postponing their suffering and in the process, they end up suffering more than the guy who suffers in intensity.

The normal investor would do averaging and hold when the shares start going down. They hold it for years without booking losses. I know many guys are still holding stocks from the Dotcom bubble. They are not traded now. They are de-listed. They did not book losses and now they are suffering TimeWise.

Want to Grow up fast in your life and career?

Everybody wants to grow up fast in their life and career. For fast progress – you need clarity of mind and purpose. When you keep anything pending – be it suffering or losses – it comes into your mind. It keeps on bothering you when you want to plan for the future. You need to waste your time on managing pending issues while planning for something better in the future.

When you suffer intensely NOW – you will suffer total pain at the moment. Next moment, there will be no pain. Your mind will be free to think about the ways to recover your losses or make a huge profit in the next move.

Ideally, suffering in intensity and bouncing back from the losses looks more practical in life and investments.

What Next?

Look at your life and portfolio. How do want to suffer? TimeWise or Intensity Wise. Remember – you have no choice to escape the pain. Your progress will depend on your choice.

I wish you all the best.

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

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.