First of all congrats. You are alive and not been decimated. Lucky are the ones who are about to retire – they will get a great chance to invest smartly. So obviously a man who retired a few months ago and put half his money into YesBank at a price of 252 (obviously great buy, it had fallen from 400 you see) was not so lucky.

What is the learning from a fall like this?

1. it is impossible for any of us to be ready for ANYTHING falling of the cliff.
2. It would have been impossible to call such a sharp fall.
3. We all knew that the market was overvalued, but hey we all love a bull run
4. In a bull run taking profits off the table looks painful
5. In retrospect we all feel like kicking ourself.
6. More reasons why you should maintain a diary and record your feelings
7. In 2022 we may see this as “OMG what the f…was I doing”
8. Do not kick yourself for rushing in and buying – today’s bargains are better!
9. When the market is so one-sided it is easy to think “I knew it was coming”
10. If you have a good adviser, talk to him.
11. If you do not have a good adviser, find one.
12. Remember “this too shall pass”
13. I have said that the market could stabilize at 27k – but 25k could also be tested.
14. The fall has been rapid, but the recovery may not be.
15. 2008/9 recovery was “V” shaped – that’s a poor learning
16. Recovery could take much longer than what you wish
17. If we went from 42k to say 27k in 3 weeks, be prepared for a 3 year return to 42k
18. Keep your eye on the game, not on the score card.
19. In 2025 you will see articles saying “fund gave 169% return in 5 years”
20. Skill is in trying to find THAT fund now
21. Most CIO and CEO can’t pick a winner outside their own fund house
22. this behaviour is called “Over–confidence” – OBVIOUSLY they are wrong
23. Hindsight bias – this week we know EXACTLY WHAT happened – AND WHY.
24. In 2025 we will know what we should have done in 2020.
25. The answer is very simple – Do Vipassana, sit in meditation, remain calm
26. Those who removed money at 41k are LUCKIER than the guy who did at 39k
27. Markets are down because there are more SELLERS THAN BUYERS.
28. thank God for the gold, liquid fund, debt fund in your portfolio
29. I am mostly invested in Equity, and I know I have to sit calm – thats luck/skill?
30. My Asia fund, US fund, European fund and Indian fund all are in RED.
31. If I look at my 50 year return on equity, this will look like a blip
32. Alpha will make a comeback !
33. Corona virus – we are jumbled in our thinking.
34. ………..more to follow……………