Enjoy the roller coaster this Diwali

“Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget” the book is available in multiple formats now. Take your Pick.

  • The book is available in two languages – English and Gujarati.
  • It is also available in two formats – hardbound and e-book. There are multiple e-book formats available.

So, go ahead and take your pick. Enjoy the roller coaster this Diwali.

Wish you all a Happy Diwali!

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Roller Coaster in the mind – “Success-confidence-overconfidence-ego inflation-mistakes-fall-lessons-right actions-success”

“The 22 Immutable Laws of Branding” – a wonderful book by Al Ries and Laura Ries has some superb lessons for CEOs, entrepreneurs, marketing managers and brand managers. I found some lessons for the investor, as well. Here is a short excerpt that I liked:

“Success in business doesn’t just show up on the bottom line of the profit-and-loss column; it also goes to the top. Success in business inflates the egos of top management.

Supremely successful companies believe they can launch any product into any market. They can make any merger work. It’s just a question of having the willpower and the resources to throw into the task. What is it that we want to do? is the question that management usually asks itself.

History hasn’t been kind to this type of thinking. Overconfident management has been responsible for most of the marketing disasters of the past decades.”

The above paragraph talks not about the skills and abilities of the successful managers. It talks about the way the human brain works. Success leads to confidence – that turns into overconfidence – which inflates the ego. Ego blinds the brain and misguides it.

It’s all in the mind – after all.

Now replace successful top managers of a successful company with a successful investor and you see the point that I am making. The moment an investors gets small successes, the “success-confidence-overconfidence-ego inflation-mistakes-fall” cycle must follow. Very often, the success of an investor is not a function of what the investor was capable was, it’s a function of the investor being at the right place at the right time. To make it short, “investor was at the right place at the right time” can be replaced by the words “investor was lucky”.

This can be turned to the investor’s benefit if the investor adds some steps to the cycle. The cycle should not end at the “fall”, but continue from there to “… fall-learning the right lessons-taking the right actions-success”.

#RidingTheRollerCoaster – 172

 

Emotional or rational

When the stronger emotions of greed and fear take over, rationality is thrown out of the window.

“Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget” is a story of two roller coasters – one in the market (visible) and the other in our minds (invisible). The emotional roller coaster could turn out to be more harmful than the one outside in the markets.

#RidingTheRollerCoaster – 81

Day and night and market cycles

While day and night come at a regular frequency, the same cannot be said about the financial market cycles

#RidingTheRollerCoaster – 21

“… what a read/ride it was …” says Mr. Sudarshan Rao

I just finished Riding the Roller Coaster and boy, what a read/ride it was. Painstakingly handpicked stories from the Tulips to the Ulips. I will keep Riding the Roller Coaster !

  • Sudarshan Rao