A reader of The Safal Niveshak Post recently asked me about my background and experience, and about the story of my life.
I thought today is a good day to share that, given that my story started exactly 33 years ago. 🙂
However, being an analyst and investor, here is a different way I will tell you the story.
Hope you’ll be interested to read it because the most important takeaway from my story is something that I’ve reserved for the end of this post.
So here I go.
December 1978: I was born. Sensex came into being 8 years later, but its base was set at 100 for early 1979, or close to my birth.
1986: Sent to an English medium boarding school in Dehradun. Sensex came into existence here…at around 500.
1990: Free from the boarding school. Indian economy also freed from the license raj (almost!). Sensex sees its first real spurt, rises to 1,300.
December 1992: I turned 14. Sensex down 40% from its peak of 4,467 after the Harshad Mehta scam blows out. Several close friends of my father lose their shirts after a fall from here.
June 1997: Finish school and enroll for a degree in commerce at the Rajasthan University. Sensex at another peak of around 4,500 just before the Asian financial crisis. Falls 25% after the crisis hits and till the time I celebrate my 20th birthday.
July 2001: Came to Mumbai to join a management course from the University of Mumbai, and specialize in Finance. Beginning of an interest towards stock markets. Sensex at around 3,700 before falling by 30% post the 9/11 attack on the US.
April 2003: Get my first (and last) job as a stock market analyst, where I worked for the next eight years (till April 2011). Sensex at 3,200, and just at the first step of a massive bull run that lasts 5 years.
December 2008: Start of a major disillusionment towards my ability to forecast the future of stock prices. As I pass my 31st birthday, Sensex is in doldrums…down 57% from its January highs.
April 2011: My disillusionment paves way for me to quit my job to start work on something I’d always dreamt of – Safal Niveshak – which was launched in July 2011.
Anyways, from the time I was born and Safal Niveshak came into existence, more than 32 years had passed.
During these 32 years, the Sensex multiplied by around 200 times, or at an average annual rise of 18%. Not a bad rate of return for a long term investor, even after accounting for inflation!
So that was the story of my life and experience so far.
Now for the most important part of this story.
Over the past 32 years, the world has seen…
- 5-6 deep recessions,
- 5-6 major wars,
- Innumerable financial scandals, and
- Countless geopolitical tensions.
The impact of all this has been felt on India and our stock markets as well, in some form or another.
Even then, when I was born, if my father had invested just Rs 10,000 as a future gift for me in a good quality stock, I would’ve had enough money to retire from work by now.
In a way, however, it was good that my father chose not to invest then and instead invest a lot on my education, which I believe will pay dividends to him over the next few years.
But think of it this way. If you are 25-35 years of age (like my father was when I was born) and have 15-20 years to save and invest for your children, stop worrying about recessions, currency wars, terrorism, and scams.
These are not going to matter much when you look at how much wealth you’ve accumulated 15-20 years down the line for your children’s higher education, or their other needs.
And why only for your children, even if you are 35-45 years of age and have 15-20 years to go for your own retirement, now is the time to start accumulating for it if you haven’t started as yet.
By the way, you will do yourself a world of good by ignoring what the talking heads on television predict about the next one week, one month, or one year. They are there to ensure their comfortable retirement, not yours.
You do your own homework, find out the best investments, start small, and then have faith in the power of compounding to take your wealth to a level where you will be happy to say to yourself, “I’ve done it!”
All the best!