Investing

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10 Demons of Investing

I wish all tribe members of Safal Niveshak a very happy Vijayadasami or Dussehra. As per Hindu tradition, today marks the victory of Goddess Durga over the demon Mahishasura. Today also marks the victory of Lord Rama over demon Ravana.

Consider Ravana. He is depicted and described as having ten heads and as a follower of Shiva. He is a great scholar, a capable ruler and a maestro of the veena, but someone who wished to overpower the devas. His ten heads represent his knowledge of the six shastras and the four Vedas.

A negative interpretation of Ravana’s ten heads are the ten emotions or senses in humans –

Kama (Lust),
Krodha (Anger),
Moha (Delusion),
Lobha (Greed),
Mada (Pride),
Matsar (Envy),
Manas (Mind),
Buddhi (Intellect),
Chitta (Will), and
Ahamkara (Ego)

When it comes to investing, some of these emotions stand in between the investor and his long-term success.

As the story of Ravana depicts, the mind tends to shun all things good for our life and seek all things bad for our life. To attain wisdom, one of the most important things we must do is witness the tricks of the mind, and avoid playing the wrong hand as much as possible.

In the illustration that follows, I have tried to depict the ten emotions, or the ten demons, or the ten tricks of our minds, when it comes to investing. Print it, paste it on your work desk, and look at it often.

No investor can claim to master or kill these demons, but a knowledge of these residing within you is, I believe, pretty helpful.

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My Conversation with Radhika Gupta (Video and Notes)

I recently interacted with Radhika Gupta, MD & CEO of Edelweiss AMC. The subject was – how to become a successful investor.

Click here to watch the video of the conversation, or watch below.

Here are the key notes from the conversation. These are not as detailed as what I spoke, but contain the important ideas.

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Remembering Rakesh Jhunjhunwala

Rakesh Jhunjhunwala, one of the most successful Indian investors, passed away on 14th August.

I never got an opportunity to meet and interact with him, except for a few moments more than a decade ago. “Respect the market and be prepared for failure” is my faint memory of the advice I heard from him and, in hindsight, it was a great advice that I have never failed to practice.

Mr. Jhunjhunwala is known for his passion for the stock market. But how passionate was he?

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Reflections on Life, Investing, India at 75, and Keeping the Main Thing the Main Thing

One of the best books I have read on living a life of purpose is the one from the world-renowned innovation expert Clayton M. Christensen, who developed the theory of ‘disruptive innovation’, which has been called the most influential business idea of the early 21st century. In fact, Christensen introduced ‘disruption’ in his 1997 book The Innovator’s Dilemma, which was supposedly the only business book that Steve Jobs had on his bookshelf.

Anyways, the book I am talking about today is Christensen’s How Will You Measure Your Life?, the idea for which came up first in a 2010 speech he gave to Harvard Business School’s graduating class.

Drawing upon his business research, he offered a series of guidelines for finding meaning and happiness in life. He used examples from his own experiences to explain how high achievers can all too often fall into traps that lead to unhappiness.

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[Transcript] The One Percent Show: Kuntal Shah

Note: This transcript is part of Prime Membership, but I am sharing it here for the benefit of a larger audience. When you join Prime, you get access to all detailed transcripts of The One Percent Show, plus a lot more. You can check the Membership details and join here if you are interested. I am offering a special inaugural discount on the Membership, which is available only till 15th August or for first 200 members, whatever comes early.

Kuntal Shah is a partner at Oaklane Capital, co-founder at Needle.ai, and a board member at Flame University. An electronics engineer by qualification, Kuntal bhai is a first-generation entrepreneur, a business leader and a prominent value investor with three decades of experience spanning various aspects of the capital market.

I look up to him as a fountain of knowledge and wisdom, especially when it comes to investing, business analysis and the economy. I’ve had the opportunity to learn from him and his experiences, through his various talks and presentations, and I must thank him for all the wisdom he has shared over the years.

Also Access On: YouTube | Apple | Google | Spotify | Amazon

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Announcing: Safal Niveshak Prime Membership

I have been writing content on Safal Niveshak for the past 11 years, and almost all that I have shared here has been and will always remain free.

That work exists completely with support from YOU. You may have bought my investing course, or a book, and I thank you for that.

Today, it brings me great joy to launch a new service for you – The Safal Niveshak Prime Membership – where I plan to share with you the best ideas from my learnings from the world’s greatest teachers in areas ranging from investing, decision making, learning, and life.

As a Prime Member, you will unlock access to exclusive members-only content, transcripts of my podcasts, notes on listed Indian companies (without recommendations), special ebooks, notes from the books and other timeless resources I am reading, curated content that I am consuming and learning from day after day, and special members-only discount on my value investing courses and books.

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My Notes on Howard Marks’s Latest Memo: I Beg to Differ

The Sketchbook of Wisdom: Special Rs 200 Discount till 31st July 2022

Buy your copy of the book Morgan Housel calls “a masterpiece.” It contains 50 timeless ideas – from Lord Krishna to Charlie Munger, Socrates to Warren Buffett, and Steve Jobs to Naval Ravikant – as they apply to our lives today. Click here to buy now and claim Rs 200 discount. Offer valid till 31st July 2022.

Howard Marks yesterday released his latest memo to clients of Oaktree Capital.

It was titled “I Beg to Differ.”

It’s a wonderful take on how investors must think and act differently and independently, if they aim to achieve superior investment results.

I have prepared some notes on the memo. Click here to read my notes.

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Stay safe.

With respect,
– Vishal

Safal Niveshak is 11 Years Old

The Sketchbook of Wisdom: ₹200 Discount till 31st July

This is a story from January 15, 2009. It’s not my story, but an inspiring one.

US Airways Flight 1549 on its way from New York City’s LaGuardia Airport to Charlotte, North Carolina, struck a flock of birds shortly after take-off, losing all engine power.

Unable to reach any airport for an emergency landing due to their low altitude, pilots Chesley ‘Sully’ Sullenberger and Jeffrey Skiles glided the plane in the Hudson River. All 155 people on board were rescued by nearby boats, with only a few serious injuries.

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My Advice to a Young Investor – Part 3

The Sketchbook of Wisdom: Did you get your copy?

This is the third part of this unintended series on my single biggest advice to a 26-year-old investor.

First, she asked – What advice would I offer to a 26-year-old to do well in her career?

I offered this advice – Play games that you can win.

Then, she asked – How do I know which games to play where I can win?

I offered this advice – First, try to answer this question: ‘What do I desire?’ Then, do a few things that you desire to do, maybe 2 or 3, and then gradually you will gravitate towards the number one out of those 2 or 3. Keep learning, keep exploring, and you should find that one game that would become the only that you would like to be in. And once you have found that game you should play, start playing, get better at it over time, and you should win – not against others but along with others who are also playing that game.

Anyways, then she asked – But how do I get over the fear to even start playing the game that I can win?

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My Advice to a Young Investor – Part 2

The Sketchbook of Wisdom: Did you get your copy?

This is in continuation of the previous post on my single biggest advice to a 26-year-old investment analyst on what she should be doing to do well in her career as an analyst and an investor.

My advice to her was this – Play games that you can win.

After reading the post, she came back with a follow-up question – But how do I know which games to play where I can win?

This was another important question. And since I knew this would come, I was better prepared this time.

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