Very few people watch the great game of Tennis in India, but the sport and stock market investing have quite a few similarities.
Both depend on the capability of an individual. It’s a test of mental strength, the margins are very small and the game can turn at any moment.
One bad day and the greatest of players can be humbled. Very similar to investing where one wrong decision can wipe out years of returns.
Yesterday, the Roland Garros final was played between the Top 2 players in the world.
Novak Djokovic and Rafael Nadal.
The result wasn’t very surprising – after all, Nadal has been invincible at the French Open. But the manner in which the World No 1 Djokovic lost, was what really stood out.
Djokovic had an off-day, while Nadal was at the peak of his powers. Very similar to the Australian Open 2019 final, between the same two players, a match which Djokovic easily won.
After the devastating defeat, the highest ranked player in the world said “Of course, defeats like this are never really enjoyable, but in the greatest of defeats you learn the greatest lessons as a tennis player, as a person as well“
There’s a lesson in there.
Even the biggest and the absolute best in their respective fields – can suffer big defeats. What sets them apart is – they learn from them and come back stronger.
Like in sport and life itself, setbacks are common in the world of investing too.
Even the most successful of investors will tell you, some of the biggest mistakes they made were in the first few years of investing.
Even after years of experience, Rakesh Jhunjhunwala lost crores on a company like DHFL. Warren Buffett too has had his share of blunders.
But it’s these defeats, these setbacks, that give the biggest lessons in life.
Remember, a bear market always has much more to teach, many more lessons to give – than a bull market.
As long as you learn from your mistakes, don’t repeat them and continue to give it your best – you will do well as an investor and in life as well.