In the battle of Kurukshetra in the epic Mahabharata, the young Abhimanyu dies while trying to fight the Kauravas in a master strategy called “Chakravyuh”.
There is a very powerful lesson in this story for investors. Abhimanyu got into something that he did not know how to get out of and paid a very heavy price. Very often, investors enter into an investment without really knowing how to get out of the same. The ability to liquidate the investment with ease is one thing that any investor should look for in any investment that carries any amount of risk.
In the words of Warren Buffett: “Invest within your circle of competence.”
#RidingTheRollerCoaster – 65