Experienced Voices

Have Patience & Be Realistic!

“Hoping for the best is not an issue, Issue is to lose the touch with reality.”

One thing that helped me in my investment journey is learning from the experiences of other fellow investors. Investors, who have traveled the path ahead of us in their investing journey, and can share how their decisions have shaped their outcome.

Today, I am going to share the experience of Sandeep Nangrani. He is in mid to late forties, An engineer and a MBA by education. He had worked in various corporates like Godrej & Boyce, ICICI Bank, EXL Service, TCS, Oracle etc. He has an investing experience of ~20 years and have a first hand experience navigating through the earlier episodes like dot com bubble, 9/11, financial meltdown in 2007-09, Demonetization etc. In 2009, he won the zonal round of “Hunt for India’s smart investor” a wealth management show on ZEE business and successively represented Bangalore in national semifinals. (Link)

Below are some of his leanrings:

First, There is no alternate to reading. There are always things you do not know when you start your investing journey. It is imperative to have the plan or understand the basics before jumping on the investing band wagon in lure of huge profits. He has spent a significant time with magazines like Outlook Money & early websites like Value Research etc to build his foundation. Investing in any product, which you do not understand is just gambling.

Second, Having patience in investing can do wonders. Warren buffet has often mentioned that stock market is a machine to transfer money from impatient to patient people. If your cash flows are steady and the ability to invest in not hampered then you should not run away from the falling market but continue to invest or if possible increase your investments. More you invest in falling market, higher the chances of wonderful returns you have in future.

Third & last, Be realistic in your return expectations. Investing with the expectation to hit a jackpot or 70-100% returns every year is not a realistic expectation. In reality the expectation of 2% equity risk premium over the risk free investing is good outcome. If the FD returns are 8%, then 10% is a pretty good return. Make sure if you are lucky and make exorbitant returns on your investments like in the 2014 or 2017, You should book the profits and reduce the equity exposure in your portfolio.

Sandeep has recently paused his corporate career to be a full time investor and helping other people to manage their investments in an efficient manner. He can be reached on his facebook page.

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