I like to approach my investing with the same mindset that I approach watching India play cricket abroad. The keyword there is ‘abroad’.
See, when India plays abroad (and I mean the SENA countries – South Africa, England, New Zealand and Australia), my expectations are low. When they do better, I am elated, and when they lose, I don’t get too depressed.
I think watching our investment portfolio should be the same. Having realistic expectation means, a boom market (like now) makes us real happy, but a downturn does not faze us much. There is, let’s just say, downside containment of our disappointments 🙂
On the other hand, if we look at our portfolio like watching India play at home (like right now), we expect too much, every defeat is a an unexpected disaster, and a win feels like just ok.
Not good feelings; And makes us act rashly with our portfolio (like ‘resting’ Rohit Sharma :-/ )
How do we form the right expectations, you ask? Glad you did – please read this article from our archives – it’ll set you right!
1 thought on “Investing and watching India play cricket”
Thanks I read the earlier article. I am confused. Some of the prices are always uni-directional ( unlike Vegetable prices fluctuating on demand-supply). For e.g Transportation or conveyance costs( here , thanks to Govt’s greed for revenue , fuel prices do not come down even if Crude prices drop ! )There are other examples like Rent, Education fees, Hospitalisation costs. So to say that Retail inflation rate of growth has dropped over the last 5 years , is a mirage , from a common man’ s point of view. Rajan’s Returns target of 1.5% to 2.0% over retail inflation – is like walking into a pond assuming the average depth as 3 feet only
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