My 8-Year Old Relationship

And secrets of maintaining it!!

Don’t worry, I am not discussing my “ secret relationship” this week - that remains secret and confidential. The relationship I plan to discuss is not too secretive - few know about it, just making it public.

The relationship I am referring to is with the stock market/stock investing. More specifically, direct equity investment. Let me come straight to the point. When you invest in direct equity, you should be 100% committed to it. You cannot have a casual relationship - heartbreaks are tough in this relationship. So, if you fear commitment in a relationship. Please don’t enter it.

Stock investing requires a deep level of commitment, understanding, and patience. Just as you wouldn't enter a marriage expecting immediate, lavish rewards, investing in direct equity isn't about quick profits. It's a long-term journey that demands continuous dedication and trust.

Like any relationship, there will be ups and downs. There will be times when the stock price soars, making you feel on top of the world. And there will be times when it plummets, leaving you questioning your decision. But just as you wouldn't abandon a partner in times of hardship, you shouldn't abandon your investments during market downturns.

Why I am calling direct equity investment a relationship?

A relationship, more specifically a marriage, is 100% commitment and you stay with your partner day in and day out. You cannot be there for a year and then leave them and come back after a few years and expect them to be the same. It does not work that way, right?

Understand with Example

Let me now take an example to make you understand why 100% commitment is super crucial. A classic example is - Tata Motors.

Let us say, you fell in love with Tata Motors in September 2014 (a decade back). You committed to the relationship by investing Rs 1,00,000 at Rs 500 per share. You stayed in a relationship, 100% committed, for a few years and then for some reason, left.

You did not break up - you were still in the relationship (holding share) but not longer checking the health of your partner (quarterly results), up and downs (price movements), and not reacting when you had to (buying more love when opportunity presented itself).

Today (September 2024), after 10 years, you decide to go back to your love. The stock price is Rs 1000 today and you have doubled your money in a decade. Poor returns I would say in this relationship. And you are to be blamed for it. The fault is not of your partner (Tata Motors), it is 100% yours.

If you had stayed involved all this while in this relationship, 100% committed, you would have been much happier with what you got from your partner in this phase.

Let me explain how. Your partner was not doing well between June’18 and October’21 (for more than 3 years, the stock price was below 300). It needed you to be with them. You should have checked the health and if everything was fine, you should have invested more time in figuring out how to take the relationship to the next level.

If you had taken care of your relationship back then - you would have received a bigger reward later.

I have been in this relationship for less than 7 years. With 10 years, you made only 100% returns because you were not involved in your relationship. On the other hand, I got over 300% returns in less than 7 years.

I am 100% committed to equity investment.

I hope you learned what relationship means in the stock market and how to be successful in the relationship.

Please understand that being in a relationship and being 100% committed are two different things. The result varies drastically.

I hope you understand the point I am trying to make. Just as the best relationships flourish with time, understanding, and dedication, your investments will only thrive when you are fully committed to them—ready to face challenges, adaptable to changes, and patient enough to see the growth through to the end.

The good part is that these relationships are much easier to end if you don’t want to continue than the “real relationships”…hahaha

If you have liked the details of my relationships, please share it with your friends and family. It may help some not get into wrong relationship or it may help a friend who is not fully committed in a relationship.

If you have not checked the 9th Wonder of the World - do check it out HERE.