It was March 2020, we were all set to end our financial year just as every year. Life was sailing pretty normal, but something wasn’t going right in the world as a whole. China was hit by a viral outbreak later termed as CORONAVIRUS (COVID-19) by WHO in January 2020. And, March 2020 it has entered India as well and infected many. The pandemic had taken a deadly shape and the entire country is facing a lockdown situation to avoid any contact with people who could be potential carriers of the virus.
I’m feeling like I’ve time-travelled in my life and telling these stories to my grand-kids. Really? Would I want to share the story this way? I don’t think so! Rather, I’ll share with them the opportunities I could grab during the economic breakdown ad how they made us successful as a family.
The time when we are house arrested as per the Government notice, it’s time to not just Netflix and eat the delicious food at home but to plan for a better life ahead. This Coronavirus pandemic situation has got the economy slashing more than a recession alone would do. Here is what I’m doing to take due advantage of the market scenario and plan for a better future:
I have never in my investment journey thought of short term investing when I chose a company to pour my money into. I always want to associate myself with the companies that I have belief in fundamentally, and when such happens I don’t detach myself from the same in short run.
I started investing with very little money in few thousands, investing was the only way that I could think of for achieving financial freedom. The journey started in the summer of 2012 and somewhere along the way, it turned into a passion and love for the share-market.
I would like to highlight one of my investments in the company Deepak Nitrite Ltd. Five years ago, I began buying its shares and the very first lot that I bought was priced at INR.60/- per share. During this period of last five years I kept on buying its shares repeatedly and it was a joy watching the share reach the price value INR.540/- per share.
Sir Warren Buffett’s Influence
When I used to read Sir Warren Buffett say, “There will be a Multi-Bagger share in your portfolio which will outperform every other share and will make you believe in the power of compounding” I used to wonder! But personally got to experience in my portfolio with Deepak Nitrite Ltd. I have been holding this share for more than 5 years now, and it has more than doubled my wealth in this period.
Also Read: 10 Secrets That’ll Boost your Money Saving
Initially your investment could be in thousands, then lakhs and then definitely in crores one day. But patience to continue keeping a long term view is really important when it comes to investment. You cannot think of becoming a billionaire unless you start investing with that thousand bucks in your bank account which you could spend sitting in a café in just 2 minutes time.
Nothing is Permanent in this World
We, very often begin taking things for granted. For the first time in my life, I am experiencing such pandemic situation spread in the world which has put everybody’s life in danger. Such situations make one think that nothing is permanent in this world!
While I’m pen downing this piece, I’m reading in the news that we have 550+ positive coronavirus cases in India and 19000+ people are dead due to this deadly virus worldwide. All these people would never ever have thought such an outbreak could lead to loss of their lives.
So, don’t wait for the world to be favorable in all aspects for you. Begin your investment whenever you think you’re ready and are convinced with the company’s philosophy. Just keep a good track of the invested businesses, the market gives an opportunity to buy them back at more reasonable valuations during such crisis situations.
I have a detailed self-made checklist to judge a business before investing in its shares. The checklist has many factors like quantitative, qualitative, management philosophy, valuation, promoter and the full picture for past mistakes. I have made it a discipline to not buy any stock before going through my checklist thoroughly. Also, I keep updating my checklist with new learning regularly.
Also Read: Value Investing: The Butterfly Effect
I urge that one should invest with a long term (at least five years and plus) horizon. But keep checking how the business is performing every quarter. Long-term investment does not mean you invest and then forget about it, instead keep a brilliant track of the same.
Happy Investing Guys!
This is not the investment advice, please do your own research.