Investing Lesson from Test Cricket!

Republic day holiday & I was watching test cricket live after a long time. Its always a enthralling battle when its an even contest between bat and ball.

3rd day of the test and India were batting to avoid white wash. Pitch was behaving unpredictable at times with sharp bounce and deviation from good length, in investment language it was risky. But the Indians weathered it out in the middle taking blows on knuckles and body. Eventually Indians managed to post a fighting total against South Africa.

However, when it was South Africa's time to be in the middle, the South Africans chose to leave the field when there opening batsman was hit.

As I write this the test is to resume again today in few minutes from now, and outcome would most likely come today. Win or loss is only an outcome, sport is more about spirit. Indians showed lots of spirit and I couldn't help myself from drawing an analogy between what happens on cricket field and in an investment arena!

Any sport seems easy if you are spectator but you understand that its not so easy once you are playing it. Similarly making investments seems easy from outside, but the moment you invest money into stocks you come across number of behavioral pitfalls as rational self deserts oneself. Greed in rising markets and fear in falling markets usually takes investors wicket! Those who stay put and weather the volatility take home the gains!

Test Cricket is called rightly so; its test of patience, conviction and skill over longer duration. Only robust players with all three attributes turn champions here. Similarly in markets, especially stock markets you need the right skills to identify the right investments, which is only job half done. Once invested, investors patience and conviction is tested out. Investors with skills, patience and conviction take home the prize!

4th Day of the game is about to begin, may the force be with us :)

#Investing