“I Reserve the Right to be Wrong”
Wise words from India’s maverick investor Rakesh Jhunjhunwala
This month saw the birth anniversary of the legendary ace investor Rakesh Jhunjhunwala.
In his short lifespan of 62 years, he took the markets and masses by storm. His investing style was a bundle of contradictions and no one knew exactly how long he would hold a stock, and when he would exit it.
He had several opinions, many of which contradicted each other. But he made no qualms about the fact that he had the right to change his opinions and he had the “right to be wrong.”
To quote a line from one of his interviews, “I am too young to have a philosophy. I remain open to changing my mind.”
Another signature line of his was, “I reserve the right to be wrong.”
Rakesh Jhunjhunwala’s lines ring true for every one of us. Because it is not always that what we do or say will be “right.” It is not humanly possible.
It is also contrary to evolution to hold the same opinion all your life. Because as life situations change, you will have no choice but to keep evolving your stance and adapting to what works.
As is often said, “Change is the only constant.”
Why then do we hold someone to their words? Why do we insist that he/she be “a man or woman of his/her word?”
Are we not judging too harshly then? Are we not taking away from people the freedom to explore what works best for them and what doesn’t?
As a writer and thinker, my views have changed many times over the past few years. My writing style too has changed.
Moreover, what I wrote just two-three years ago seem like hollow words today. And, that’s only natural, otherwise it would mean I haven’t grown since.
So you can discard old ideas and thoughts that don’t work in the present, just like you would old clothes that no longer seem fashionable.
My point is, that everyone can and should be open to changing their minds, without feeling they will be crucified for it.
No man or woman can stand for one thought or belief all their life. That would simply stunt their growth and life experience.
Just like an investor who works by trial and error, investing in companies after much research, holding the stock, and then seeing if it’s profitable or not, an individual too can see if a particular thought or idea works for them or not, and then decide if they need to hold on to it or let it go.
Life is indeed a work in progress; and nothing we say or do has finality.
Nothing is conclusive in itself. It’s only fluidity of thought that will allow us to be imaginative and take wild bets.
If we had to be “right” in every decision, the fear and pressure of that itself would prevent any action.
In the stock markets, if you hold on to your beliefs for too long, you may lose a lot of money. Not seeing an investment decision as a wrong one, and getting out of it on time, can lead to plenty of losses… Essentially, your hard-earned money.
So you accept the wrong move, stop your losses, and take what you can out of the market.
The market is the most humbling and non-judgemental way to view your life and decisions.
What was right yesterday and in the green, may be wrong today and in the red. That’s not your fault, that’s just how the market is.
Likewise, in life what views you held a few years ago, may not seem true today, and that’s not your fault too. That’s just how life is…constantly changing.
In the market we see trends, in life, we see phases and stages.
If you do what you did in your teenage years today, that would simply mean you haven’t grown.
So, change is normal, changing your viewpoint is normal, because,
If you don’t go in the direction of the tide, you will get swept away by it.
Rakesh Jhunjhunwala was never one to slot himself in any category. He was neither a trader nor an investor, but a bit of both, moving between the two avatars depending on what worked for that particular investment.
That’s perhaps what made him so successful — the ability to be agile and nimble in his investment strategies, never sticking to one belief for too long.
Rakesh Jhunjhunwala didn’t shape the markets, the markets shaped him.
Thus, we may try to shape our lives, but ultimately we learn that only life can shape us. It will teach us lessons, test us, and ensure we keep revising our life strategy…because that is the only way to grow.
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