Previously I wrote learning investment lessons from movie “3Idiots” and “Rajneeti”. Now, I am going to write few investment lessons from another super-hit movie “Dangal”. Dangal movie having a very inspirational story and as well as many lessons which we can implement in our life & in an investment.
- Investment journey is also full with struggle
Wrestling can give medals and fame but doesn’t provide intermediate cash inflow which is required for living life. This has affected the game of Amir Khan, his wrestling career and he has to start doing a job.
At the initial stage, Investment journey is also as difficult as wrestling show in a movie. When we are constructing our portfolio at that time our portfolio is smaller in size. So, that it will not help us with huge dividend as intermediate cash inflow which can helpful for living our life.
- Events are not always as per our expectations
In the movie, it shows that Amir Khan wants a son for fulfilling his dream, but actually, he got 4 daughters. So, that every time events don’t occur as we want it to occur.
As similarly in investments, events don’t always occur as per our expectations. For example, if we have made position in any logistic stock by focusing on GST then we expect that GST gets passed and get implemented. But as we have seen GST get postpone many times. So, that we also have to face for the unexpected events can occur in our life and also in the investment field.
- Har woh cheej joh inka pehelwani se inka dhyaan hatavegi… main usse hata diyon (I will eliminate anything that deflects their attention from wrestling.)” Avoid noise
When 1st time Amir Khan doesn’t get son as per his expectations, all villagers had started providing advice to him. But he realizes that nothing has happened after following all pieces of advice of different people. Also, many a time, Geeta and Babita had argued regarding their long hair, tiredness, body pain, cannot able to focus on study, etc. but Amir Khan has always found ways from it. We should not stop our journey though obstacles keep on coming.
The same happens with our investment field. When we start building a portfolio or researching on any of the business, people start providing an advice. We should differentiate between noise and a true information. If we keep focusing on noise and get trapped, then, at last, we also don’t get anything as per our expectations.
- Don’t lose hope
Amir Khan disappointed when his wife gives birth to four daughters. He gives up his dream thinking that girls cannot wrestle and lose hope of fulfilling his dream to win gold (Award) for the country. But one unexpected incidence – when his older daughters, Geeta and Babita come home after beating up two boys, help him to realize that girls also can become a wrestler.
As similar, whenever we don’t get the stock for investment, then we also get disappointed. But actually, we should not lose our hope and keep researching on the businesses, we might get one good investment opportunity after studying numbers of businesses. Also, when we have made position in the stock with some assumptions and those assumptions turn out into reality but might be at a lower speed. Then also we should not lose our hope any hurry to exit from our position; one moment can able to change the entire result.
- “Medalist pedh pe nahi ughte … unhe banana padta hai … pyar se, mehnat se, lagan se (Medalist don’t grow on trees … you have to nurture them … with love, with hard work, with dedication)”
Since becoming a wrestler, Geeta and Bbita have to do a strong exercise and hard work. They regularly wake up at 5:00 o’clock in a morning and start doing exercise. Their regular efforts make them successful.
Same happens with investment field also. We also need to put a continuous effort, continuous reading of Annual Reports, business/ industrial magazines, etc. our regular efforts with discipline only help us to become a successful investor. We also need to make an effort in developing our investment process and philosophy.
- Don’t focus on what people think
We have seen in the movie that people have started talking regarding Amir Khan when he had started coaching Geeta and Babita in wrestling. Many a time people laugh at him and also Geeta & Babita has to face such teasing from people.
When we pick up any stock for research or make position in any of the stock than many people start to laugh at us; might be start teasing us. But we have to stick towards our process and philosophy without getting disappointed from the comments of people. We should know that what we are doing and having a full understanding of it.
- Dangal ladne se pehle dar se ladna padta hai (Before you fight you need to fight with your fear) and Practice brings confidence
Initially, Geeta and Babita feel fear for wrestling and not ready for a fight. Geeta loses her 1st wrestling match also. But after that, she gets motivated and asks her father for the next match. Geeta won many matches with confidence. Continuous practice brings such confidence to her.
Initially, we also feel the fear that what happens to our investment? If stocks fall from our buying, then what happens? Am I ready for making an investment? We also need to stick to our process and philosophy. It might be possible that our initial investment ideas could be our biggest mistakes, but continuous practice can bring confidence under us. And confidence can push us to become a successful investor.
- Never be overconfident
After winning a national championship, Geeta went to institute and she begins to disregard the discipline she has been brought up with. When Geeta visited her home, she is determined to show her father, she can wrestle well without his techniques. Geeta finds herself losing every match as she is not following her father’s techniques or she is not fully focused on wrestling (painting her nails and growing her hair long).
Same happens with our investment field. We easily get overconfident in the market. When we invested, stocks start running, we should always analyze the reason for such run up; rather think that stock runs because we have a position. The stock never knows that we are holding it or not. We always need to stay humble and stay focused towards our process.
- “Geeta ka natural game attacking hai, apne technique ke chakkar me fasake uska game hi ulta kar diya. Yu to wohi baat ho gayi ke Sehwag ko bola jaye bhai tu Dravid ki tariyah khel. Na Sehwag reh jawega aur na Dravid ban pawaga. (Focus on our natural game)”
Geeta’s coach’s training differs significantly from her father’s techniques. Geeta believes her coaches’ techniques are better and that her father’s techniques are outdated. But those new techniques have changed the natural game of Geeta. And Geeta lost matches.
Similar to the investment, as and when we get diluted our focus from our original philosophy and investment style which is suitable for us; from that time, onwards our investment career also having a tough period started. We should focus on investment style suitable to us rather try to copying style of others.
(Source: SafalNiveshak: The Wisdom of Intelligent Investors (Special E-Book))
- “Kehne ko toh ek round sirf do minute ka hota hai … par socha jaave toh do minute mein 120 second hote hai … us ek second ka intezar kar jab samne wala galati kare (To say, there are only two minutes in a single round … but if you come to think of it, there are 120 seconds in two minutes … wait for that one second when your opponent makes a mistake)”
By this dialogue, Amir Khan wants to say that Geeta should focus on the game and do attack when the opponent makes a mistake. She cannot able to get points in every second, but she should attack a right time.
As similar to this, we should always wait for the right opportunity to come, rather run for catching up all opportunities around us. We should keep in mind that we cannot able to catch each and every opportunity around us so that we should wait for the right opportunity to come toward us.
(Source: The Most Important Thing by Howard Marks)