Secrets of Success in Investment – 2

“The ancient Romans were used to being defeated. Like the rulers of most of history’s great empires, they could lose battle after battle but still win the war.

An empire that cannot sustain a blow and remain standing is not really an empire.”

— Yuval Noah Harari,

The same rule is applicable everywhere whatever it may be in history or in an investment.
The same thing is also said by a legendary investor Warren buffet for an investment.

“In an investments you have to first survive in order to succeed“

– Warren buffet

Nowadays we are so smart that we are learning like lord Dattatray from everywhere like a dog, fly, spider, cartoon characters,  mythological character etc., but at the same time, we are so dumb that can not even implement that knowledge in day to day investing decision.

Knowing something is not a sign of knowledge, it is how to implement it.

– Shailesh Sampat

We, at BLTP, following the same rule. In an investment, you could lose battle after battle and still can win the war. Here losing battle after battle means you might be trailing behind, compared to other standard portfolios in the peak of the Bull Market, but when it comes to Bear Market, your investment should be protected against disruptions.

Whatever it may be, in history or in investment the empire(Strategy) that cannot sustain the blow(disruption) and remain standing is not really an empire(Strategy). In an investment, survival will be the starting point of your winning race, once your journey started towards a victory starts.

Remember our mission is not just to invest money but make it safe.
It’s not all about returns only but its returns with safety
In Financial Planning, Investment is an art, but if not implemented with proper strategy will end up with a big failure in the purpose.

While starting an investment we are just ignoring two main things.

1. Investment should be started with a tag of some goal.
2. Investment should be started with a strategy suitable to the goal assigned.

We all are very well experienced that when the market dips down, valuations of our portfolio gets most affected. This makes us of a very irritable nature and we start making irrational decisions. Just like,

1. Blaming AMCs & FMs for not protecting schemes against disruptions.
   • Remember that FMs first and last priority is to manage the entire portfolio of the scheme as a whole the portfolio is built according to the style of investment in the category of the scheme. It is our duty to manage the investment portfolio.
2. Blaming on Investor Behaviour and Biases.
   • Remembe, just like investor we are also a human being and we are also prone to a certain type of psychological tendencies along with investor we should also check that our biases and behaviour is not hurting investor’s portfolio. By doing so we will be helping ourselves only. When we are protecting an investor’s portfolio we are protecting our income only.
3. Forget to implement a proper strategy.
   • Apart from market risk Scheme Portfolio has its own risk also. We are entering In the same portfolio in between so it is necessary to align our investment to the scheme portfolio in order to get optimum returns.
   • We are here to generate optimum returns with maximum safety which is only possible by adopting a proper strategy for protecting investment against disruptions in the market.
4. Diverting our focus from MF to Insurance, Gold and other products when markets dip down.
   • This is nothing but an Ostrich Mentality. You should face the situation then only you can win the war.
     
     

     
   • I am not against selling insurance we must sell insurance to protect investors against uncertainty in their life, but not through diverting focus. It has been noted that whenever there is a fall in the market recommendations of insurance is increased.
   • Gold and Stock markets both are inversely related when one comes down other is gaining most of the time but if you want to allocate some portion in gold it should be done at an earlier stage otherwise that will not help as we think.
   • It should be kept in mind that Gold and Insurance should be included as a part of the portfolio, to fulfil Financial Planning needs, not an alternative to MF when the Market gets Dip-Down.
5. Reading information with a Biased approach.
   • Pay attention to Distracters – Distracters are designed to distract your way of thinking.
   • Translate the Information – what are they REALLY showing.
   • Understanding information and taking action accordingly is a very important part of successful Investing.
   • If the interpretation of information is wrong the results will obviously be disastrous.
   • We will discuss this topic in coming blogs in 2 parts.

What is stopping MFDs from becoming limitless Advisor?

If you feel this useful forward it to your other contacts and suggestions to me

Keep Learning, Keep Investing, Keep Growing !!!!!!!

Very important note: The objective of this blog is to share knowledge and info about new ideas/opportunities in Mutual Fund. Neither is this trading website nor an analyst website nor an advisory website. For Mutual Fund Investment success, always do your homework, own analysis, and make your own decisions.

For commercial collaboration and Mentorship contact via sampatsn@bltpindia.com or call Mr Shailesh Sampat at 9371521221

Subscribe to your mail-id for getting information about our post publications.

Call Us : 9371521221 / 7020210271 / 9339647457 / 9860238188

Know More: BLTP – The NeXT Gen Investment Strategy