Let’s Start with Safal Niveshak
Just in case you missed any of this on Safal Niveshak over the last few days…
- Rs 25 lac is good enough saving for an Indian middle class family over a period of 5-6 years. But how about an “extra” Rs 25 lac? Here’s how you can achieve it.
- People find it difficult to confess their mistakes in the open. Not the Safal Niveshak tribesmen! Read a big bunch of confessions from readers who have lost a lot of money in stocks they now think were big mistakes (good revelation in hindsight :-)). By the way, if you haven’t confessed yet, what are you waiting for?
Recently, Farhan and Raju validated this in the movie 3 Idiots…
We often evaluate our own situation by comparing what we have with what others have.
The rigours of modern life – and the social necessity of keeping up with the Joneses – makes this weakness even more pronounced.
Here is an excerpt from Dan Ariely’s “Predictably Irrational” that I’m sure you would relate with your own life (like I could)…
A few years ago, for instance, I met with one of the top executives of one of the big investment companies. Over the course of our conversation he mentioned that one of his employees had recently come to him to complain about his salary.
“How long have you been with the firm?” the executive asked the young man.
“Three years. I came straight from college,” was the answer.
“And when you joined us, how much did you expect to be making in three years?”
“I was hoping to be making about a hundred thousand.”
The executive eyed him curiously.
“And now you are making almost three hundred thousand, so how can you possibly complain?” he asked.
“Well,” the young man stammered, “it’s just that a couple of the guys at the desks next to me, they’re not any better than I am, and they are making three hundred ten.”
The executive shook his head.
You see, envy is a tricky emotion. It exists on the edges of our consciousness. We don’t like to admit that we envy someone, especially if that someone is someone we don’t like or to whom we feel superior.
Subsequently, we’re as likely to deny we’re in the grip of envy not only to others but to ourselves. And that’s when it becomes a deadly sin, even as far as investing is concerned.
Like, look at this friend of mine who sold off his HUL shares a few months back at Rs 450, and then bought them again recently at Rs 700.
“Why?” I asked him in a sense of intrigue and disgust.
“Because I didn’t wanted to miss out on gains like others have made recently,” he revealed.
This reminded me of the story of Newton and his tryst with the stock of South Sea Company in 1720…
I find a lot of such Newtons around me…and often in the mirror! 🙂
Financial historian Charles Kindleberger wrote in “Manias, Panics, and Crashes” – “There is nothing so disturbing to one’s well-being and judgment as to see a friend get rich.”
It was for good reason, after all, that the Ten Commandments admonished – “Neither shall you desire your neighbor’s house nor field, or male or female slave, or donkey or anything that belongs to your neighbor.”
Now, how do you get over your envy?
You can’t…simply because human nature makes us compare ourselves with others all the time. That’s the way our brains have been wired.
But you can still try. How?
- Never envy your neighbour and never be owned by pride.
- Remind yourself this each day – “I will not run a rat race because even if I win, I will still be a rat.”
- Don’t try to mimic what those around you are doing. They may have a totally different purpose in life.
- If someone else is getting richer faster than you by, for example, investing in risky stocks, so what? Someone will always be getting richer faster than you. This is not a tragedy. (Indian CEOs eyeing the “Forbes Richest” list need to read this!)
Finally, remember what Charlie Munger said – “Envy is a really stupid sin because it’s the only one you could never possibly have any fun at. There’s a lot of pain and no fun. Why would you want to get on that trolley?”
Stimulate Your Mind
Here’s some amazing content I read during the week gone by…
- When is the last time you thought about how you think? Here’s a nice little post from Farnam Street on the five elements of effective thinking.
- Here’s another reason I read a lot, and why even you should.
- Stress kills, and big time! Here are three effective ways to free yourself from your addiction to stress.
- The Economist recently posed this question to a few of today’s leading writers – “What was the greatest speech ever?” The result will surely make you proud.
Avoid falling in love with your ideas.
Till next weekend…
Chief Poker – Poke the Box
“Rs 25 lac is good enough saving for an Indian middle class family over a period of 5-6 years.”
Jeez…I am falling behind the average Indian middle class family then….reminder to myself : need to earn more.
The previous comment was made only after reading the first sentence of the article.. now having read the entire article…it appears really funny 🙂
Vishal Khandelwal says
Hey Raghav, what appears funny? My article? 😉
Now you are trying to be funny. I meant my ridiculous first comment, of course.
Great advice, keep up the good work.
Akshay Jain says
Very apt videos. And the article is also extremely relevant to the markets these days when you see only a limited numbers of stocks going up everyday, taking the sensex with it. Tempting to buy those companies not on a risk-reward basis but on the feeling of being left out (envy)
Awesome quality of articles
How wonderful, both the points you have made.
If only one could handle these two aspects it would be a lifetime achievement ! 🙂
We often fail at the first (though with age a few get better at handling envy) and try to imbibe the analogy to water.
If envy can be channelized into a positive “I will” “I can” it can be a great motivator, otherwise you can just keep falling into a bottomless pit. One way to chanellise it is to say wow and feel happy for the other person and then say to yourself what would it take for me to get there, assuming I want to, and put all your energy and soul into it.
Life offers many lessons, many challenges and time and again we need to reboot, realign.
A tree that bends with the wind survives that which remains rigid falls.