Can you adopt Sachin Tendulkar’s batting secret in the world of investing?

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Let me tell you a real story of Sachin Tendulkar’s secret of scoring runs.

One day in an international match the game was stalled for some technical reasons with stadium lights. To kill time, commentators announced that they will start interviewing Sachin, undoubtedly the greatest cricket player all the time.

The commentators asked Sachin, you are not the greatest, nor the strongest, nor the toughest yet you are rewarded as the top player in the cricket world. How do you do that?

Sachin replied.  “I don’t go where the ball is bowled by the bowler, but I anticipate the ball to be bowled, take position and strike with the bat.

In a simpler line, Sachin confirmed that his success did not come chasing the ball, instead it came from staying one step ahead and by anticipating where the ball would likely pitch next.

Is this concept related to equity mutual fund investments also?

Indians, as an investor, has just learned to invest in Equity and Mutual Fund. But investors chase past performance. If markets fall, they remove money. If markets give superior returns in one year they put more money anticipating it as a money-making machine every year. This is the wrong way of investing.

On the other side, in the same stock market, foreigners have made tons of money from our stock market and lot more than Indian Investors. They are very confident of our country’s growth prospects.

They have placed the investments before the next growth comes in India.

Let’s look at Multinational Companies Investment in India.

  • Amazon has spent most out of Rs. 35000 crores earmarked for India, has also announced to spend additional 12000 crores to defy competition. Amazon’s spending in India caused Amazon USA to report losses in USA. Amazon has such a high conviction in India story.
  • Walmart, seeing Amazon’s growth, trying to buy major stake in Flipkart, that will result in to Investment of close to Rs. 70000- 80000 crores in India story.
  • Japan’s SoftBank declared in 2014 that it will invest close to Rs. 65000 crores in Indian market by 2024. In April 2018, SoftBank said it has already invested Rs. 52000 crores in India now and will complete target by 2022 instead of 2024.
  • Global Hotel chain Marriott has now highest rooms in India. Marriott has now 22000 rooms in India, 2nd highest Taj has 14000 rooms. If you go through plan of another foreign hotel chain The Hilton group, they too want to expand furiously in next couple of years.
  • HDFC Bank declared result last week. It posted massive Rs. 4799 crore profits for Jan – March quarter and Rs. 17486 crore profits for last financial year. But, who benefits from HDFC Bank’s success story, Indians? Absolutely not. We don’t trust our companies. Foreigners own 74% of HDFC bank. They benefitted from success of HDFC bank. They are consistently owing 74% for last many years now.
  • Our entire focus is on one Nirav Modi and one Vijay Mallya and we choose to miss whole India story. While foreigners, too, take note of Nirav Modi and Mallya but they don’t take their eye off big India story, which will continue to play for many years to come.
  • Other very successful Companies, Paytm and Makemytrip are owned by foreigners, Indians have just minor stake in it.
  • My message is just sit on your investment in Equity and Mutual Fund before the whole world is coming here to invest. And, they are not foolish. They have studied opportunity very well. They have benefited earlier from other such developing markets hence they know size of the opportunity. Do your investments before the next big growth comes in the market.
  • Be an early mover. If you have already done investments, then *Stay Invested* Become the Sachin Tendulkar