Reflections on My Journey in Equity Investing: Lessons Learned
Reflections on My Journey in Equity Investing: Lessons Learned
My journey into the world of equities began in my early 20s while I was serving in the Indian Air Force. Back then, the thrill of opening a D-mat 3-in-1 account with ICICI Direct and placing my first trades was unmatched. It was the dot-com boom, and technology stocks like HCL Tech, Satyam, and HFCL were soaring. The excitement of intraday trading—seeing trades execute and watching money move up or down—was exhilarating.
However, the euphoria was short-lived. The dot-com bubble burst, and technology shares crashed almost overnight. I lost my entire investment. That experience taught me one of the most valuable lessons in investing: trading isn’t the most reliable way to create wealth. It shifted my focus from the quick thrill of trading to the stability of long-term investing.
I decided to take a different approach and began building a portfolio of quality stocks with a long-term perspective. I bought shares like McDowell, Titan, SBI, HPCL, Dena Bank, and Thermax, investing just over a lakh rupees. My plan was to hold these investments for years, allowing them to grow.
However, life had other plans. Just a year later, as I prepared for marriage, I had to liquidate my portfolio to meet immediate financial needs. I sold those shares with a nominal profit, unaware of the tremendous potential that lay ahead. If I had held onto those shares, especially Titan, my portfolio today could have exceeded 10 crores.
Looking back, here are my takeaways:
1.Have a Strong Holding Capacity: Even with high-quality stocks, I didn’t have the holding power I needed because too many financial obligations relied on the same pool of funds. Only invest what you can commit for the long term, without the pressure of withdrawing when life’s demands arise.
2.Consider the Power of Mutual Funds: Over the past 20-25 years, mutual funds have proven to be powerful wealth creators, offering diversification and professional management. They can mitigate the concentration risk and reduce the need for intensive stock research.
Today, I see investing not just as a strategy for returns but as a disciplined approach to building wealth over time. The market will have its highs and lows, but staying committed with the right strategy makes all the difference.
Happy Investing!
