I wrote yesterday about five ways to destroy wealth in the stock market.
As an antidote, and especially as you may be sailing through the vicissitudes of ecstasy (after seeing your stocks surge yesterday) and, at the same time, misery (for not buying more stocks before yesterday), today I share with you one way to win at the game of investing, or at anything in life.
That way, my dear friend, is of equanimity, which is calmness and composure, especially in a difficult situation.
Indian scriptures define it better as samabhaav, which means “sameness of things” or samatvam, which means “evenness of mind.”
In the Bhagavad Gita (Chapter 2, Verse 48), Lord Krishna advises Arjuna on the battleground of Kurukshetra –
योगस्थ: कुरु कर्माणि सङ्गं त्यक्त्वा धनञ्जय |
सिद्ध्यसिद्ध्यो: समो भूत्वा समत्वं योग उच्यते ||
Translated – Be steadfast in the performance of your duty, O Arjun, abandoning attachment to success and failure. Such equanimity is called Yog, or union with the Supreme.
When it comes to investing, making money in stocks when everyone is making money in stocks isn’t a big deal. Rather, it’s the ability to handle good and bad times with equanimity, combined with courage and decisiveness, that really matters in the long run.
Of course, most of us simply aren’t wired to be equanimous at most of the times, and it’s terribly difficult to rid ourself of the emotions of ecstasy (when things are looking up) and misery (when things are looking down).
And that’s why ensuring that we avoid all of those ways that can cause us wealth destruction – trading, timing, high fee, inadequate diversification, and leverage – is paramount.
Everything, including our triumphs and disasters, anyways shall pass. But the equanimity with which we allow them to pass will keep us sane always.
As Lord Krishna taught Arjuna, as we wade through the ocean of life, it throws up all kinds of waves that are beyond our control. If we keep struggling to eliminate negative situations, we will be unable to avoid unhappiness. But if we can learn to accept everything that comes our way, with equanimity and without sacrificing our best efforts, that will be true Yog.
So, give equanimity a shot, and see what happens.
Rajdeep Saha says
Do you practice yoga? What is the form?
Vishal Khandelwal says
manisha gautam suthar says
Plz read Autobiography of a yogi by paramhansa Yogananda once.
dhawal patel says
Great Sir, This is what i was feeling yesterday, now i am calm after reading this.
RAMACHANDRAN N says
Again an appropriate article at an appropriate time.
Thank you sir.!:-)
I have been following you for more than 3 years, great and useful information you are sharing here has changed the way I see the world.
But I am unable to accept long term approach because of my unfulfilled doubts. Some of them are,
->Due to huge and rapid distruction in the market more than 80% of well known companies may disappear within next 10 years,
so how should we think before buying.
->Even if a company sustain there is less chance to know about the management and corporate governance of the company which plays very vital role of companies future.( I really doubt their is any company exist without corruption)
->Even if every thing is okay, the stock we bought have become multibagger than what is good time to exit,
Untill the moment small investors like me sensing something wrong about the fundamentals of the company most of the big money will exit and the stock may be either in gap downs or in lower circuit.
So please try to write on when to sell, because it is also more important as when and what to buy.
Anand N V says
What a thought to start the day… Thanks a lot Vishal🙂
Mohan Lal Tejwani says
👌👍 Thank you!🙏
Hi Vishal…yet another thought provoking analogy and a powerful explanation…keep writing and continue with your selfless effort in helping readers like us to the state of equanimity :)….kudos to you !
Bhavik G. Shah says
All weather attitude to start a day. Thanks for sharing Vishal.
Mahendra Pratap says
When we feel equally at good times as well as at bad times we call it equanimity. This can happen when we have no craving for reward but constant focus on our process of doing our work more efficiently.
A small article but carries lot of weight. The essence of life truly
Rajat Bhatnagar says
Excellent Vishalji. First article I have read from you. Made my day. Respect.
Saeed Mohamadi says
You are a true artist sir. I recommend reading “Perennial Seller: The Art of Making and Marketing Work that Lasts book” by Ryan Holiday. Great salute from one of your fan in Iran.
M B Agrawal says
As always, Vishal, beautifully explained. I am in total agreement with you. Thanks for sharing.
Crux of bhagvad Gita. Thank you sir keep writing.
Sanjay suresh khanvilkar says
Ritesh Garg says
Absolutely Thought Provoking.
Naman Garg says
I have one request to make to you. There used to be a “Resources” tab on your blog in which you mentioned all your favourite books and other materials regarding investing. But now that tab is not there.
Can you please reshare that tab?
Chandra Prakash jhawar says
Very inspiring sir.keep writing.Thanks.
Bharat Saraiya. Ahmedabad. says
Chandra Prakash jhawar says
Very inspiring..plz continue doing so.Thanks.
A very important lesson. Thank You Vishal Sir.
Vinayak Kamath says
Where is the like button?!
Dr.Rajnikant Gajjar says
It is only 2 minutes reading ,but even a full life time may fail to implement it.
Not that Nobody knows this,but fact is that everybody forgets it most,when it is to be learnt by heart.
I appreciate your brevity of posts,right words,minimal words,maximum message,so badly needed in these days with so many issues in list for our ( ?????precious) time.
Praveen Gorthi says
Another Simply Great article.. Thank you.