Catch this “Snake”

Hi
Just wanted to share this story.

Once there lived a businessman. But he lost lot of money in the business ventures and became bankrupt. He was under pressure from his lenders and was not able to bear the pressure or pay up. He prayed hard to God for money so that his problems could be solved. This did  not happen but he continued praying.

He decided to commit suicide and one day he bought  a bottle of poison after deciding, that was the best way to die, that night. He however decided to sleep that night one last time and die the next day morning as it would not make any difference.While he slept that night he  had a dream.

God appeared In his dream and told him that he wanted to help him. He asked him what he wanted. The merchant told God  he wanted  Gold and money so that he can clear his loans and start a new life. God told the merchant that next day morning when he wakes up, he should go to the backyard of his house,where a small garden was there. He will see a snake coming. All he has to do is to catch the snake. Once he does his problems would be solved. Stating this God disappeared.

The merchant woke up the next day and remembered the dream and what God had told him. He wasn’t sure. But decided to go to the backyard. After some wait he saw a snake coming from one corner. As things were happening as per dream now he had to go and catch it.

He was still not sure of the dream and secondly he was scared to go near the snake. Time was ticking. He was in a dilemma but the snake was moving from one corner to another. Still nothing happened and time as running out.

The snake by now had crossed the garden and slowly started entering a hole near a tree . Still the merchant was scared and unsure. The snake was on its last leg and had almost entered the hole.

Now the merchant mustered courage and decided to test what God had told him and he rushed to the hole near the tree. As he neared the hole the 6 feet long snake had entered completely except the last few inches of the tail. The merchant put his hand and caught the snake’s tail.

Guess what happened??
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The inches of the snake’s tail turned into Gold. He was surprised and very unhappy. He thought,if only, he had caught the whole snake he would have got more Gold which could have rid him of all problems.

Now, what has this to do with our investing?

Most of us, while investing, we behave like the merchant. We want the best but we are scared. I remember this quote

All investors want to do today what they should have done yesterday” – Larry Summers

Some the lessons we can infer from the above story

a. There is a risk to every reward. This does not mean that high risk will always yield high reward.

b. Even if God, says something, we don’t have faith. Therefore it is human not to believe or trust the advisor who gives you options.

c. We always want to enter the investment at the end of the cycle, when we should not be entering and blame our luck.

d. Don’t time the market. Time in the market is very important.

e. More importantly act. Start early to get the benefit of time invested, or the power of compounding.

f. Have a financial goal.

g. Review at least once in a year.

If you follow the above guidelines, you can also be a “Midas, with the Golden Touch”

Please do contact me for any assistance to build your portfolio

Thanks

varadharajan vs

ckar.vsv@gmail.com

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