The Best Lesson Timur Lang taught Indians in the year 1398. It’s a time to Re-Learn the same.

     7^th May 2022

The Best Lesson Timur Lang taught Indians in the year 1398. It’s a time to Re-Learn the same.

Dear Fellow Travellers,

Namaste! The one thing BUFFETT emphasizes vehemently is to read the history and keep on learning from the same. India has a rich heritage of culture and history. Unfortunately, the investors only focus on P/E and charts, and Media. Let me share one such event which has made a great impact on my thought process while investing my money.

What happened when Timur Attacked India?

He brutally killed lakhs of Indians and plundered the whole of India. He took tons of elephants loaded with diamonds and gold with him. When he defeated the TUGLAQUE king in Delhi – he was presented with an elephant. Timur was always driving his Horse. So, he got a thrill to seat in the AMBADI on the Elephant. As soon as the Elephant got up – he demanded where is my LAGAM – the thread with which he used to maneuver his horse. The king said – the elephant is controlled by MAHAVAT and not by LAGAM.

He immediately asked Mahavat to make the elephant seat and he got down. He was asked the reason – why you don’t want to travel on Elephant. His reply is a masterpiece and you must follow this whole life.

He said – “I don’t want to travel on anything whose LAGAM is not in my HAND”.

This is the biggest lesson.

In Sanskrit Subhashita – it was said long back – “Knowledge stored in the books and money kept with somebody – will not be useful when you are really in NEED”

Buffett calls the whole thing with one simple word – Circle of Competence. He only invests in something which he understands.

Why we are remembering this lesson?

There is heavy Media bombarding going on with one SLOGAN – Mutual Fund Sahi Hey!! Small investors are motivated to invest even Rs.100 per month and to start. They are giving the message that life will be Jinga Lala once you invest in the mutual funds. If you also believe in the same see the news in today’s paper.

1.   Yesterday, the news came about the cheating done by some fund managers in Axis Mutual Funds. The amount mentioned was around Rs.1000 Crs. They were doing front running. Front running is a simple way to buy first in the personal account and sell the same shares to the fund account at some profit. Say a fund manager has a plan to buy 1 lakh shares of Reliance. He may buy the same in his personal or known account first and ask them to sell and the fund will buy. All things will happen in the market terminals only. But if the GAP is just Rs.10 per share – the fund manager makes Rs.10 lakhs immediately.

 

2.   If you go back a little – the one fund invested heavily in the debt of a company which ultimately took away all the money. The fund manager was a star fund manager with a great fan following for generating a super return in a debt fund. I am not aware whether the investor got their capital back fully or not. Forget about the interest.

The above two incidences are the incidences that have come into the limelight. What about the incidences which do not come out?

The Funny Belief of Normal People: -

They want something for nothing. When Kejriwal gives free electricity or free bus or metro travel – these people believe in him. Deep down they believe that something can be Really FREE!! If you give anything FREE – they love it.

Learning Investment is a simple process but they have been brainwashed that investment should be left to the professionals only. Look at the performance of the professionals and see yourself. In the last 10 years – most funds have generated 10%-13% yearly return while the Sensex has moved up from 10000 to 60000. Don’t you think – you can do better by just investing in a stock like Reliance or Infosys?

They are controlling the normal person through their JOBS. Now, they are controlling their Money also. I have seen the FEAR with which the top guys in the corporates work. They have a fear of getting pink slips if they don’t follow the dictate of their bosses. Now, this guy has been asked to ENJOY NOW AND PAY LATER – so they have huge monthly installments to pay for their CAR / HOME and PERSONAL LOANS and they can’t leave the job. Many end up living a compromised life.

They can still manage this pressure – provided they have learned the fine art of investing themselves. But here again they have been brainwashed with – MUTUAL FUND SAHI HEY.

I really feel sorry for the above kind of people.

I will not be surprised that someday they will come out with a dictate that you should not produce your kids as your SPERMS are weak. Your wife should be infused with GENETICALLY modified SPERMS to have healthy kids. This is also the plan of the top guys. Just wait for 5-10 years and the generation of that time will be told to do so.

Top guys are controlling MAN / MACHINE / MATERIALS / MINUTES. Money is the only thing that is left. With Mutual Funds, they are controlling your money also.

Who was killing Indians in Gandhiji’s independence fight against the British?

This is another history lesson to remember. British created their military with the people of India only. They were paid military personnel fighting against their fellow Indians and killing them.

So, the British made fight the Indians with Indians and took all the money from India.

A mutual fund is also an imported idea. The people who are managing funds, who are selling the mutual funds, and who are buying all are Indians only. The money goes to the top guys!!

You don’t want to believe me?

Since 1994 – I have observed unique features in the market. 1994 was the year when FIIs were allowed to invest in India. When FII sells – domestic fund managers buy and when domestic fund managers sell FII buys. Now, they both have a highly qualified research team. Their conclusions can be different for some time / some may have redemption pressures or some other pressures but for the whole 22 years, they have the same pattern. This should be researched well.

What NEXT?

You have invested 15-20 years in education to learn how to earn money. Thanks to that you are earning good money now. The next step is to learn how to invest your money? If you learn this – you have full control of your money cycle – earning, investing, and enjoying.

Have faith in yourself that if you can earn it you can invest it also. Start learning to invest in yourself.

If you want to learn the fine art of investing – be with us for 3 years and see the magic in your thought process and the quality of your life.

Wish you all a Happy Weekend.

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

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

Hitesh Parikh.