Indian Investors Dilemma in the current turbulent time
I’m associated with the Indian capital market directly or indirectly for 15+ years. In the last 15 years, I joined the Indian workforce just like other aspirational engineers. I wanted to make a mark in my field. India's shining slogan was all over the place.
No-one thought 2004–2008 would be a golden period. As warren buffet says “In the business world, the rearview mirror is always clearer than the windshield”. In my office, few of my senior colleagues were bullish and few were pessimistic due to the 1999–2000 crash was still in their memories.
It was hard-earned money but I wanted to take a plunge. Over the next several years, I tried various options: paid subscription for tips, equity advisors, news recommendations, margin trading, margin-plus trading, Buy-today-sell-tomorrow (BTST), and many more ways but nothing worked. In few trades I made money and in few trades lost what I earned.
Bottom of my heart, I was convinced that none of this approach is good but I wasn’t aware of what’s the right approach. I happened to be in Chicago, USA during the 2008 financial crisis. Saw Obama coming to power and hope for change across the country. During that period, I stumbled across Warren Buffett’s news and his investment in Goldman Sachs Group. In-office my colleagues referred to him as a genius and with high integrity.
I was intrigued and trying to understand how a person can be so honest but still make money in Wallstreet (which is unheard of in the Indian capital market until then, at least to me). So, I started watching, reading about him. Read all his book recommendations: Intelligent Investors, Security Analysis, the interpretation of financial statements, and many more. I was so happy as if I got a secret mantra for investing. According to Warren Buffet: “Mr.Market is here to serve you. Do your due diligence and act accordingly”.
Investing is a wonderful industry. As long as we are not investing other’s money and have a constant stream of income through other means, I’m not under pressure to act. I can stay passive for months and become active during un-certainty. Current Indian financial market crisis (2018–2020), we can give any reason (IL&FS, PSU NPA, NBFC liquidity, growth slowdown due to demonetization/GST, covid-19, etc) but these business cycles are bound to happen.
What matters is do we still believe in the Indian growth story, rising Middle class, start-ups (with honest entrepreneur) in the middle of the corrupt system and believe in the Indian Capital market, then do your due diligence and invest in the right company with right time-horizon.
