How many of you will agree with the statement – Investment is a Loss?

 3^rd June 2021

How many of you will agree with the statement – Investment is a Loss?

Namaste! Our last post on getting tons of money, name, and fame has become super successful with our readers. They liked the idea of giving the best to get the best in return. But, reading today’s title – I am sure those who felt good yesterday – will not feel so good today. Facts are always different from perception. Let me deal with the subject.

Investment is a Loss. I am sure as an investor you would have faced losses sometimes and profit also. But when I say the investment is a loss, you may find it difficult to digest. Just reflect on this. What happens when you invest? You park your fund in some shares/gold or land or anything you consider as an investment. It means the money will not be used until they remain invested in those assets. The price may increase, and you may feel notional profit or price may decrease, and you may feel a notional loss. But total money is a loss for you. If you die, your next generation may use them. But for you, it is a loss.

In one of the shareholders meeting – investor had asked Buffett – what will be the loss to Berkshire, in case he (Buffett) dies? Buffett replied in his own style – “There will be some loss, but I can tell you for sure, it will be my total loss.”

Buddha was one of the smartest persons of his time. He went out of the palace for only one time in his life and he saw – saw injured person / old person and the dead body. Seeing them he concluded that life is SUFFERING.

Same way investment is a loss.

There are causes of Losses: -

Investment deals with Future. Life deals with the Present. So, when you invest – you give more importance to the future than to the present. Focus on Tomorrow is the major cause of loss today. It may sound philosophical or out of common sense to many – but this is the fact. With investments, the person starts living in tomorrow and you know Tomorrow Never Comes, only Today Comes.  

For normal investors losses come due to their desire to make a fast profit/desire to see prices going up, up, and only up.

The desire should go, and you should realize that desires have gone.

You can end your losses.

As long as life is there – suffering is going to be there. Similarly, as long as investments are there – losses are going to be there due to the above-mentioned reasons.

So, ending life or not investing are not the solutions. But when you understand the causes of losses are your desires to make your life secure, to make profits in the future, or your desire to see prices going up one side, you end up suffering immediately. Once your desires are gone, you can stop your losses immediately. (Many will not understand the above).  

You can move towards profit

Once you end losses – you can more towards profits with the following thought process.

Right understanding and right intentions lead to knowledge that the goal of investment is not to make money but to test one’s skill set to go right in predicting the market and share price behavior. The focus should be on SKILL sets and not on the price movement. In GITA this is called – YOG KARMSHU KAUSHALAM. Expertise in the KARMA is the YOG. This is a part of WISDOM.

Then comes the MORALITY by following RIGHT SPEECH / RIGHT ACTION and RIGHT LIVELIHOOD. Look at BUFFETT, he lives the simple life despite being the richest and the most successful investor we have ever seen in the history of mankind. He follows the MORALITY of money management.

Then comes the last three – Right Efforts. Right Mindfulness and Right Concentration. Look at BUFFETT he has pledged to donate his 90% of the wealth to the NEEDY GUYS. Now, his total loss has become profit because he is making a difference in millions of people’s life with his skill of making money. In GITA it is known as LOK KALYAN.

What NEXT?

You must never forget that investment is a loss. If you keep on remembering while investing every time – you will be forced to think about the other 3 aspects of investing and I am sure someday you will reach your financial nirvana.

Have a great investing experience.

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

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.