Saas Bahu Angle In Investing

Let me start today’s blog with the story of my own family. I have an elder brother whose name is Akash and who is well settled with his business. My parents have already started looking for girls for his marriage. In our Hindu culture, both bride’s and groom’s parents match the kundli of the boy and the girl, which, as per the priests, gives the idea whether both people are compatible enough to live their life together or not. If there is some problem with the kundli, either they try to negate the problem by performing some rituals or look for another girl with whom the kundli matches.

The thing why I am discussing this has a very strong reason. According to me, instead of matching the kundli of the boy and the girl, it’s better to match the kundli of the girl and her mother-in-law. The boy’s problem is solved automatically if his wife and mother live peacefully and happily, but this is a very big problem in most of the families. Though they pretend that everything is alright, internally, it is not the case most of the time. Mostly, the guy is grounded in the problem between his wife and his mom, and ultimately has nowhere to go or support. There is a very nice proverb in Hindi supporting this incident, which is- “Naa ghar kaa na ghaat kaa”. Most of the Indian families watch a reality saas bahu show, especially the women. The very famous show that all women watch is “ Diya Aur Baati Hum”. The story of the show depicts the same situation where a guy named Sooraj Rathi is stuck in his family between his wife and his mom, Bhabho. One who watches the show knows very well what happens to this guy all the time. I am not here to tell any story about matchmaking or any family drama, but to discuss investing.

Investing is such an area that shares its common from most areas in life. The point that I am going to discuss here is about the investor who generally gets trapped between the fundamentals of the company and the market sentiment. The Investor generally starts with research about a company, and if the stock is properly priced, he invests in such a company, having a long-term view and also to enjoy the benefits of compounding. But the daily news about the company’s market volatility and sentiment by the people largely affects the price. So most of the time, he’s confused about whether to go with the fundamentals of the company or stick to the sentiment present in the market with regard to the stock.

I believe that in such a situation, it’s better to believe and act on the research that you carried out before investing in that company. The reason for the sentiment is that its impact is prevalent only in the shorter term, but since the view while investing was for the long term, we should simply avoid such situations, which are nothing but the noise in the market. Rather, it should be seen as an opportunity to add on to the portfolio instead of reacting to it in a panic. However, if a person has an excellence over both fundamental and technical aspects, it’s always better to use fundamental to pick out stocks for the long term, while technical would help you to enter and exit. So it may help you to exit from the stock when it has corrected, fetching you a higher return in the journey. Such excellence in both the fundamental and technical fields is rarely seen, so as to strike a balance between the two. So while investing, the wise decision is always to go with the fundamentals of the company.