For over 20 years, my journey has been intricately woven into the fabric of the Indian capital market. It began like many aspirational engineers, eager to leave a lasting impact on my chosen field. This period coincided with India’s burgeoning growth, marked by the resonating optimism of the “India Shining” slogan.
No one could have predicted the golden period spanning 2004–2008. Warren Buffett notes, “In the business world, the rearview mirror is always clearer than the windshield.” Within my office, the atmosphere was a mix of bullish and pessimistic sentiments, with the haunting memories of the 1999–2000 crash still fresh in the minds of senior colleagues.
Driven by the desire to make my hard-earned money work for me, I embarked on a journey through various investment avenues. I navigated everything from paid subscriptions for tips to engaging equity advisors, exploring news recommendations, margin trading, and margin-plus trading to the intricate world of Buy-today-sell-tomorrow (BTST) strategies. Yet, none seemed to yield consistent success; some trades bore profits, while others saw losses eroding my earnings.
In the depths of these experiences, a profound realization took root within me: none of these approaches were fundamentally sound. The quest for the right direction led me to an unexpected encounter during the 2008 financial crisis in Chicago, USA. Witnessing the arrival of hope in the form of Obama’s presidency, I stumbled upon news of Warren Buffett’s strategic investment in Goldman Sachs Group. Within the confines of my office, Buffett was revered as a genius with unwavering integrity.
Intrigued by the notion that one could be honest and successful on Wall Street — a concept seemingly foreign in the Indian capital market — I delved into understanding Buffett’s principles. I devoured his recommended readings, including “Intelligent Investors,” “Security Analysis,” and “The Interpretation of Financial Statements.” It felt like I had uncovered a secret mantra for investing, encapsulated in Buffett’s wisdom: “Mr. Market is here to serve you. Do your due diligence and act accordingly.”
The world of investing, I realized, is a captivating industry. Provided we are not managing others’ money and maintain a steady income through alternative means, we can remain passive for extended periods and become active during uncertainty. Reflecting on the recent financial market crises in India (2018–2020) attributed to various factors — IL&FS, PSU NPA, NBFC liquidity concerns, growth slowdown due to demonetization/GST, and the impact of COVID-19 — one understands the inevitability of business cycles.
The crux lies in whether we still believe in the Indian growth story, the burgeoning middle class, and the potential of startups led by honest entrepreneurs within a system often marred by corruption. It’s about maintaining faith in the Indian capital market. The key is to conduct thorough due diligence and invest wisely in companies aligning with your convictions and the right time horizon.