Things To Pack For The Investing Journey

The first rule in the art of investing is to cut down risk and live to fight another day. As Warren Buffet said, if you want to finish first, you must first finish. And what is risk but just not knowing what you are doing?

So, our objective in doing this special package of stories is to provide you the basic building blocks that will help you appreciate what you need to know. To know is to survive. Understanding risk is absolutely the beginning. The following pages will help you take that first step, but it is up to you to take the further steps required for successful investing.

The leitmotif that runs through all the stories and binds our discussion on the various asset classes is that investors can benefit from equitable and balanced economic and social development of India. GDP growth is an important element of that development, but by no means the only one.

Since it is not just growth that creates investment opportunity, it is important not to get carried away by focussing only on headline numbers of growth. Drill them down to the islands of opportunity across asset classes and within each asset class. We will not exactly point out what your choices must be but will equip you to choose.

Investing is all about common sense. It is not about making the right calls all the time. Everyone will make an occasional mistake and lose money. As long as it is not big enough to sink you, you should not worry about it. Instead, focus on thinking through your process.

That process has a few elements. The first among them is knowing why you are buying an asset. When you look at something as an investment, don’t let your sentiment, emotion or aesthetics come in the way. If you really love something, say a work of art, do buy it for your personal enjoyment. But when it comes to investing, back the potential winners even if you don’t have a fancy for them.