require something increasingly rare: discipline, patience, and mindfulness. By aligning the philosophy of yoga with financial habits, investors can create a more balanced relationship with their money.
Most equity investors look for quick results. They micro analyse each day’s market fluctuation, try to rethink each decision they made, second guess not only their own research but also the advises they have acted on from seasoned professionals. But when you look back at this moment 20 or 30 years from now, these fluctuations will feel like nothing more than a small blip in time.
Two decades ago, the Sensex was around 5,000 points. Despite several ups and downs like the Global Financial Crises where Sensex declined by more than 30% in less a 6 months period; a sharp fall of about 27% at the onset of the COVID-19 pandemic; and numerous periods of sideways movement, Sensex has yet again crossed the 81,000 mark. This is a 16.2x times gain in the 20 years period. This long-term growth underscores a vital lesson - patience and persistence are often the most rewarding strategies in not only Yoga but also in investing.
During every bout of volatility which could be triggered by events completely out of anyone’s control, investors often feel depressed looking at the temporary losses in their portfolio values. Many even act impulsively and sell some of their investments. But most successful investors aren’t chasing quick wins or reacting to every market shift. They think long-term, stay calm during volatility, and many times take advantage of the market nervousness to find some compelling ideas. The
power of compounding is infact like yoga - it has the power to transform your life in ways that one would have never imagined. Ask someone who has spent years meditating in a disciplined fashion, the transformation that he/she has undergone. Somebody who has never meditated cannot even imagine the inner peace that someone with that experience has achieved. Just as no one masters a headstand on the first try or fully experiences the benefits of kapalbhati or pranayama within a few weeks, it’s the steady ongoing practice that brings real transformation.
Every session of Yoga begins with one fundamental instruction: focus on your breath. It's a call to anchor yourself in the present moment and not on what just happened or what’s coming next. The same lesson applies to investing. People need to see beyond just returns if they want to create true wealth and that is possible only when you focus on the investment process and not on the investment outcomes.When investing, one has to understand that despite all the research, analysis, and planning, there will always be elements of risk. You might pick the right fund, but the market may still dip leading to a broader level fall in your portfolio. You might invest at the perfect time, but returns could take years to compound. That’s not failure, but a reality. A very important philosophy that applies here is ‘
aparigraha’ or non-attachment. By embracing non-attachment, investors can avoid the stress of trying to control every outcome. It’s about being consistent, making thoughtful decisions, and then allowing the process to unfold. This is much like holding a yoga pose with presence and ease, rather than striving for perfection.Yoga has been recognised globally to discover the essence of life. By focusing on the present, dealing day to day with equanimity, maintaining discipline to lead a balanced life and using meditation and exercises for both the mind and body, millions of people have achieved happiness. By incorporating some of these principles in our investment processes, we can have similar outcomes for our wealth as well.
(The author Raghvendra Nath is Managing Director, Ladderup Asset Managers. Views are own)
(: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
