Someone once said India runs in 3 things – Religion, Cricket, and Bollywood. And honestly, most of the time, for Indians, the lines separating these are almost invisible. Being a Bollywood buff myself, I am not blaming anyone. Which is why I decided to put my last weekend to good use and stay in bed and watch my favourites. Of course, it began with all-time classic, Sholay. India’s first ever ‘Blockbuster’ in the true sense.
And while I watched the Sippy classic, for the Nth time, it dawned on me that this is not only a cinematic classic, but also a book of lessons for Indian Investors. Pardon me, but as Indians, we understand things better when we add Bollywood to it. My brain is wired that way. And I believe it is so for many Indians.
So here are 4 Lessons from Sholay, that every Indian Investor irrespective of are or expertise, must know.
Lesson#1 – Pick Your Jays and Veerus
Everyone who has watched Sholay remembers its characters like they know them personally. Especially Jay and Veeru. These names etched in the minds of Indians across generations.
Having said that, while people are in awe of the characters played by Amitabh Bachchan and Dharmendra, they tend to miss an especially important character. – Thakur Baldev Singh. The village leader who actually chose the two to win his battle for him.
Thakur could have picked anyone from the barracks, but he chose Jay and Veeru. He did his research, background checks, how they have performed in the past, integrity, and strength tests and much more… And trusted them with his life.
And that is exactly what smart investors must do.
Do not go around picking every stock based on hearsay tips and WhatsApp messages. Do your homework, find fundamentally strong stocks, and stick with them through tough times.
Ace investor Nemish Shah, who could be called the Warren Buffett of India, holds only 6 stocks in his portfolio worth over Rs 3,140 cr. And like Thakur, he picked his winners and has stuck to them for a long time, irrespective of how the market noise affected them in that period.
Lesson#2 – Stay Away from Jay’s Coin Flip
Remember Jay’s coin, with heads on both the sides? It bought a touch of hardcore emotions in the end which had the audiences tearing up. No matter how hard Veeru tried, he never won a coin flip, EVER. Because the coin had heads on both sides, something that Jay would call on every time.
Now imagine this to be a coin flip with your broker, who owns the coin. Scary right?
Many people realise eventually, that however hard they try, the coin flip always works out for the broker. That is something investors must try and learn early on and not wait, like Veeru, for the climax to learn that all has been lost due to a rigged game.
The difference here is Jay did that to ensure Veeru’s safety. Brokers on the other end, are generally speaking more inclined to do what’s right for their business. Most of the times, they aren’t even bothered about you. One must always remember that the brokers profits depend on just one thing – making you trade. And often, they are more inclined to suggest buys and sells without much research. The more you buy or sell, the more commissions they earn.
Think about it… They don’t charge you a percentage of your profits, they charge you just a brokerage. It is a good idea to do your research before falling for the brokers coin flip.
Lesson#3 – Plan Patiently Like Thakur
Thakur lost is entire family to the Gabbar. He lost everything! But he did not act in the panic-stricken mode.
So, what did Thakur Baldev Singh do?
He waited for years with exemplary patience and planned not for tomorrow or the week after, but for the end goal. He did his research to pick his winners – Jay and Veeru, stuck by them during all cycles of violence the village saw at the hands of Gabber, waited patiently for them to finally become strong enough to give him what he wanted for years.
Something most investors don’t get the importance of – Patience. It is simple to fall for the latest trend or for the pressure of ‘Everyone is Buying It.” But smart investors don’t do this. They don’t fall for passing fads. They pick their heroes and plan patiently for the long term. It is called “Value Investing” in simple terms.
Like the world’s most successful investor, Warren Buffett said, “The stock market is a device for transferring money from the impatient to the patient.”
Lesson#4 – Protect Your Arms from Gabbar
“Ye Hath Humko De De Thakur” … That is one of Indian Cinema’s most iconic dialogues ever written. It screams of pain! And not the physical pain per say. It is more to do with the pain of losing what is of utmost importance to you.
Consider the market as Gabbar. He is ruthless, he is absurd, he is unpredictable, he doesn’t mind a massacre…
And now think of your hard-earned money and amount you have saved as your rainy-day money as your arms.
As a smart investor, you must always protect your arms. Because if they are gone, your current days and old age could be a nightmare. Remember, not everyone gets their own Ramlal. Protect your arms at all costs. Gabbar would sometimes act very generously, but at other times, be out for everything you’ve got. The market will not think twice before cutting of your arms.
Save your money and savings at all costs. Don’t fall for the next tip you hear. There are cases where investors have lost only their savings but also their houses to hearsay tips. Young investors fall for quick money risky alternatives like Futures & Options, Crypto etc. Only to end up at zero, or probably in minus with Debt.
Remember Warren Bufftett’s golden rules.
Rule #1 – Never Lose Money
Rule #2 – Always Remember Rule #1
Make Your Portfolio Your Own Blockbuster
Your portfolio is your own movie production. And it is your job to make it into a blockbuster. A little planning goes a long way. What we discussed today were 4 lessons, which every investor, young or old, must know and follow.
Keep these things in mind if you are already investing or planning to invest in the stock markets sooner or later…
1. Have Patience, avoid the market noise and trust your heroes. If Thakur would have decided to go after Gabbar himself, Sholay would have ended in its 31st minute with Gabbar killing Thakur.
2. Pick your winners after deep research and thought. Do not go after trending reels and flaky ‘Finfluencers.’ Seek help of trusted research analysts if necessary. It’s your hard-earned money and it deserves to be treated with respect.
3. Choose your broker wisely. You want a partner in your wealth building journey, not a leech that only keeps looking forward to sucking your blood away. We are in no way saying all brokers are bad, but a little due diligence is called for before finalising a broker.
4. And most importantly… Never lose money.
All the best, Invest Safely!
Disclaimer
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.