Skip to main content

12 Native Gujarati Advice for Share Markets

This is the advice of Market Veteran NILESH SHAH, Group President and MD, Kotak Mahindra AMC published by Value Research .


I did my articleship at Hamam Street, behind the BSE Tower, three decades back. I was attracted to the stock markets, like my colleagues, to make quick money. In those days, the stock market was the Wild West, with terms like ‘company circle buying’, ‘vandho’ (dispute), ‘payment crisis’, ‘galo’ (gap/difference), ‘patavat’ (settlement), ‘bad delivery’, etc. Might was right. Bulls and bears were making money and retail investors like me were getting slaughtered. 

Luck guided me to an old sub-broker wearing traditional dagla (overcoat). I am happy to narrate his advice, in native Gujarati, which has helped me immensely over the years in managing money. 

1.While we do Laxmi Pujan on Dalal Street every Diwali, you need to worship Sarasvati Maa every day. Knowledge and wisdom are critical to making money in the stock market. 

2. Investment is about common sense, which is not so commonly available. You don’t need to wear tie and suit (professional degree) to make money. Dhoti-dagla (knowledge and wisdom) is sufficient.

3.Other than your parents, no one else is interested in making you rich. Listen to all, but make your own decisions. Don’t blindly follow the tips. 

4. Teji–mandi (bull and bear) is like Poonam and Amas (full moon and new moon), albeit without any fixed pattern. In the darkness of Amas, always think of Poonam. 

5. Trading is a very difficult way to make money. Investment is an easy way to make money. In trading, stop loss is critical. In investment, averaging is critical. In trading, discipline is critical. In investment, patience is critical. A trader has to be fast. An investor has to be slow and steady. Remember one can make mistakes when in hurry and avoid when steady (Utavala so bavla, dhira so gambhir) 

6. When batata (low-quality stocks) trades at a premium over Tata (quality stocks), it is time to get out of the market. 

7. Bhav bhagwan – price will reflect most known things. Don’t bet against the market. Dalal Street is paved with the paliya (gravestone) of people who believed that they knew more than the market. 

8. Be humble. Don’t have ego/overconfidence as even Lord Ravan lost Golden Lanka due to his ego. (Abhimaan to Raja Ravan nu pan nahi takyu). 

9. Invest in quality. You don’t take vasi (old) samosa of Dwarka (a famous restaurant on thcorner of Dalal Street) home. Why take a kachra stock home? Quality never comes cheap. 

10. If making money was so easy, everyone would have been rich. You have to work hard and be patient to make money. 

11.Greed has no limit (lobh no thobh nahi). 

12. Don’t get carried away by money and fame. On Dalal Street, when you have money and power, you are known as Sheth Nathalal. When you don’t have money and power you will be called nathiyo. (Nana vagar no nathiyo, Nane Nathalal). 

His wisdom accumulated over decades is reflected in the teachings of many legendary investors. Dalal Street is where dreams are made and destroyed. The biggest learning from three decades of participation in market is that discipline and patience are the biggest differentiator between success and failure on Dalal Street. As I enter my Vanprastha ashram, I have started believing that as an investor my duty is to do good karma (invest in good companies run by good managers coming from the conviction of good research) and leave it to the market to reward. As in God’s world, in the market also you may have to wait but there is justice. (der hai per andher nahi hai).

Comments

Popular posts from this blog

The Cost of Quality - CoQ

  The "Cost of Quality" (CoQ) refers to the total cost incurred by an organization to ensure that its products or services meet quality standards. It encompasses all costs related to preventing, detecting, and correcting defective work. Understanding and managing these costs is crucial for maintaining profitability and customer satisfaction. Components of Cost of Quality CoQ is typically divided into four categories: 1. Prevention Costs    - These are costs incurred to prevent defects in the products or services.    - Examples include:      - Quality planning      - Training and education      - Process planning and control      - Product design verification 2. Appraisal Costs    - These costs are associated with measuring and monitoring activities to ensure quality.    - Examples include:      - Inspection and testing of incoming materials      - In-pro...

Failure: Understanding, Coping, and Rising Again

  यदृच्छालाभसंतुष्टो द्वन्द्वातीतो विमत्सरः। समः सिद्धावसिद्धौ च कृत्वापि न निबध्यते He who is satisfied with gain which comes of its own accord, who is free from duality and does not envy, who is indifferent in both success & Failure, is never entangled ( bandan of karma), although performing actions Failure is a word that can invoke fear and disappointment, but it is also a powerful teacher and a catalyst for growth. Throughout history, failure has shaped many of the world’s greatest achievements. In India, stories of failure and subsequent success are woven into the fabric of our culture, from the world of business and sports to the battlefield and historical events. This blog will explore what failure means, why it happens, how to detect it early, its mental and emotional effects, and ways to bounce back—drawing from Indian history, business, sports, and military examples.   What is Failure? Failure is the inability to meet a desired goal or standard, whether personal ...

Importance of Documentation in Start Up Investing

Pranam According to INC42 , the Indian start-ups have raised about $42 Billion in 2021 spread over 1584 deals, the same was $25 Billion in 2022 spread over 1517 deals . However, the same between the period I Jan 2023 till 21 March 2023 was $3 Billion spread over 3 deals. As per Tracxn Indian Start-ups raised a mere $5.46 billion in the first SIX months of 2023 as compared to $17.1 billion during the first SIX months of 2022 i.e a substantial decline of 68%. There are many reasons for this decline , however this post is not for understanding the reasons for such a decline . In this post I will like to highlight the documentations that goes with such Startup Funding Deals. All said and done, the start-up ecosystem is here to stay as the Government of the day is also promoting the same or atleast that is what is being said.  The investors are willing to set aside a part of their corpus to invest in this HIGH RISK asset class.  And accelerators and angel funds have made such a inv...