ZNMD - Live It

Great Movie - Zindagi Na Milagi Dobara. Movie certainly had a message which struck to me. And it's a message which applies across, whichever way u would like to cut and paste.

While i went to movie thinking about last week's roller coster market it was natural to draw parallell to Investment Strategy also.

So here it goes :

First is - Our Biggest surprise in life comes from the most feared area of life. And conquering that fear adds multiple dimension to our existence and so living. That's true in our investment strategy also, market hates uncertainity and bad news. But most profitable trade emerges from this kind of scenario. When we are so fearful that not to even look at portfolio that's the moment to cease it. When we hate the screen the most, screen is calling us. Think about it all worst moment in last 10 years - 9/11 (2001), NDA government fall (2004), US Housing Market Collapse (2006) and very recent Lehment Crisis (2008) - Market has returned invariably 100% + in next three years.

Second - Truth is painful, but facing truth liberates you. We all have to search our own truth and face it. We may know it by heart but try to avoid it. We provide all the logic to avoid it. We over-intellectualise. We try to hide it under garb of any thing we can link it - circumstances, family, society whatever. But the fact remains we can never be fuller unless we face it. Goes with the same with market as a business, we Over Intellectualise the simple process of Buying Low and Selling High. We have inherent fear for failure and try to cover Investment Idea from all possible ways. But the fact is we all are having positivity bias (i.e. we all think chance of our success is more than others ). Fact is we all now very less about the thing happening around to take well judge view on subject ( We have opinion on every thing Greece, Italy, Crude, Alternate Energy, Boston Tea party etc) We all are compulsive forcaster ( We predict any thing and every thing - market levels, rain, government, travel time etc - lates was i predicted 2nd test win for India). So truth is there is no sure shot Investment Strategy and we need to recognise it. It does'nt mean we can not have profitable Investment. Only thing we need to realise is it is not necessary that we need to now entire path of Investment to be profitable. We can always start with time tested working premises (Low PE, Below Book Value, Interest Rate Cycle etc ) to take a decission and keep on facing truth (News Flow, Data Watch). Whenever we face the situation which challenges our original premises face it and do on the course modification to correct our portfolio. If we can do it we can have much more Investment profit and Much less waste of intellectual energy justifying the path of Investment. 

Last but not least - Live it. Whatever possible theory we can do but only applying ourself only fullfill us. Hence comes on Investment, whatever wisdom from expert, analyst and icons we can take it of the use upto certain point only. Beyond a point only our own application helps. Best Investment Profits come not because we imitated somebody very successful, but we brought some unique perspective on the table and Invested when we are most convinced.

That's Life and That's Investment.