The People Who Are Afraid of Investment
Story of an ordinary man like us
Mayank, a 25-year old software engineer became so tired of his day-to-day job and became so passionate about passive income through investing. But one thing is stopping him from investing- RISK.
- Risk of losing money
- Risk of job
- Risk of social status
- Risk of going bankrupt
Also, one thing is pushing him for investing — Opportunity
- Opportunity to earn more money
- Opportunity to live a luxurious life
- Opportunity to be successful
- Opportunity to stop leading a mediocre life.
In 2005, he somehow gathered some courage and decided to invest his savings of 400k INR in the stock market. But the real question is which stock to invest?
After his work at the office, he used to come home, fresh up and turn on the computer to start research about stocks. After a thorough research and pieces of advice from forums, he decided to invest his money in some newly IPO’ed bank — Yes Bank
Yes Bank, India’s fourth largest private sector bank was trading at 45 INR in 2005. Although he is afraid of losing his money but he had gut feeling that it’s worth it. He went ahead and bought 100k INR worth of shares.
Fast forward 10 years, In 2016 which was the 11th Anniversary of Listing of YES BANK, the stock went all the way from 45 to 1155 INR. With 400k INR investment, he became a crorepati/millionaire.
Wait, it’s NOT HAPPY ENDING
Taking inspiration from his Yes bank investment, he decided to invest money again on the stock market. But this time, he doesn’t want to wait too many years to reap the benefits.
There are generally two types of investors, one is patient. They invest a good amount of money and wait — sometimes for years.
The other is who puts money in companies, earn profits, and then takes the profit and makes another investment.
Mayank became the later part now. He took all the profited money and invested in mighty stocks called — Reliance Telecommunications, Reliance Power, Tata motors in 2016 at price 85 INR, 58 and 548 INR respectively.
But things got messy. Those three stocks became few of the worst performing stocks in 2016. Thus he lost most of the money which he made from YES bank to his recent flopped investments.
At the end of 2016, he heard of the terms — Bitcoin and cryptocurrencies. He researched very thoroughly and came to know about usage and it's extremely useful features that would revolutionize the whole banking industry.
He wanted to invest in crypto now. But this time, he is very afraid.
- Afraid of losing money(again)
- Afraid of failure
He was afraid of a couple of things more too —
- Afraid of regret
- Afraid of losing an opportunity
This time he decided to trust his gut feeling again. He learned from his mistakes now. He decided to invest in cryptocurrencies despite some people calling it a bubble.
He bought bitcoins around $1000 in February 2017. In just 10 months, The price of bitcoin got increased to $20,000. That’s almost 2000% profit. But he decided to wait anyway. After few months, bitcoin has fallen drastically to $6000. But he decided to wait anyway.
Mayank is just like us. We never know the future of cryptocurrencies. But it sure can bring lots of use cases to the world. It is the concept we believe in.
Will Mayank gain profits in future? Comment below.
To people who are afraid of investing or beginners, The intelligent investor Book is recommended , but its pretty dense and difficult to understand if you’re just getting into investing. This guy is basically starting from zero.
I would suggest reading up on the basics of investopedia, learning about buying, selling, market limits -the stock basics and then just playing around in their market simulator. Be sure to google anything you don’t understand.
