The Monk who never missed a SIP ☀

I have seen many storms in my life.

Most storms have caught me by surprise,
so I had to learn very quickly
to look further and understand
that I am not capable of controlling
the weather,

to exercise the art of patience and
to respect the fury of nature.

: Paulo Coelho

 

The below was first tweeted last year. Now with everyone expecting nothing less from the markets than “to the moon 🚀 🚀 🚀“, we believe it is as good a time to revisit and extend the story.

 

The trigger was a conversation with a friend who mentioned how he spent a lot of time investing in stocks (outside of his work) and was ecstatic about his stock returns last year only to realise the index had done better. He is now looking to consolidate everything into a few easily manageable funds.

 

So, here goes!

 

There is a SIP investor who is very disciplined. One month the market crashes because of a global pandemic.

 

The market timing neighbours come to visit. “Such bad luck,” they say.

 

“Maybe,” said the SIP investor.

 

The next month there is news of a new vaccine that will cure the pandemic. Markets are euphoric. “How wonderful,” the neighbours exclaim!

 

“Maybe,” said the SIP investor.

 

 

Then news comes that the vaccine will take over a year to make and may or may not work. Portfolio crashes again. The neighbours come to offer their sympathy for the misfortune.

 

“Maybe,” said the SIP investor.

 

Then the largest central bank says they will back asset prices. Markets rally like never before, like once in a lifetime.

 

The market timers are exhausted, are whipsawed. They congratulate the SIP investor on how well things have turned out.

 

“Maybe,” said the SIP investor.

 

And amidst all the turmoil markets make new all time highs. Pundits come out with all kind of back fitted theories on why it happened and warnings of high valuation blah blah blah.

 

“Maybe,” said the SIP investor.

 

 

A bull market leads to financial shenanigans in the name of “innovation”. Products and services are launched that seemingly will help get higher returns.

Neighbours are ecstatic. They are a loading up on thematic baskets, spending hours picking stocks, p2p loans, selling options and buying straddles and who knows what!

 

You are missing out on the feeding frenzy they say to the SIP investor.

 

“Maybe,” says the SIP investor.

 

And continues the SIP.

 

Ps: someone on twitter called the SIP investor “the monk who never missed a SIP”

 

 

Happy investing,
Gaurav
CEO | kuvera.in | @rustapharian

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