Janmashtami therefore is a good occasion to look at the life of Lord Krishna, what he had to offer to this world and the teachings which he gave to people. Leaving aside his super-human prowess and his role as a guide to the spirit, there is much that can be learned about investing from Krishna’s life. Below are seven lessons that the Lord Krishna epitomises that will assist in the daunting task of investing in the financial markets.
1. Strategic Planning and Patience
That is why one of the main principles associated with Lord Krishna’s life is the practical use of strategic thinking. When the Mahabharata war took place, Krishna was tactful to make the Pandavas’ win the war in the battle field. Likewise, investment also requires proper planning that is why in trading, having a plan is important.
Investment Takeaway: As Krishna said to the Pandavas’ to wait for the opportunity to act, the same is the case with an investor. The investment decision should therefore be preceded by a decision on financial objectives, risk taking ability and the portfolio that is to be constructed. It cannot for a moment be closed that patience should be given; the market is fickle, and it is boring to be side-tracked into selling property for the next better selling market.
2. Discipline and Consistency
Discipline is the central focus of most of Krishna’s advice and this applies to matters of finance as well. It is perhaps in the Bhagavad Gita where Krishna, his character, demonstrated this constant counsel to Arjuna: about the importance of discipline in attaining success.
Investment Takeaway: There is a concept of long-term compounding where if one auto invests consistently for the long term one can create immense wealth. They enable the exclusion of emotions in the decision making process to avoid making hasty decisions and constantly move forward with the goal in mind.
3. Diversification
In the light of the above assumptions it is clearly apparent that there is a need for balance.
Krishna is depicted as an ethereal chariot driver as well as the prince that he was with, suitable as a prince yet more than a charioteer. They embraced each other efficiently and no work dominated the other as they kept a healthy balance between the two.
Investment Takeaway: There is no doubt that diversification is the key concept in investment. As Krishna had both responsibilities at Pandu’s court and serving as a spiritual guide back home, people should also maintain their diversified investment portfolio where they should invest in stock, bond, real estate and gold etc. By diversification, achievement of good results of any given asset class does not affect the rest or if any class has performed badly, the whole portfolio is not heavily affected.
4. Risk Management
Lord Krishna was expert in planning well in advance and handling the events with prudence, most of the times tipping the balance in the side of dharma. He knew even the dangers, but he always managed to avoid them.
Investment Takeaway: Despite what most people like to think, little is free, and thus every investment has its risks. The essence is recognizing such risks and learning ways that one could avoid such risks. It may mean balancing between the types of investments, investing in less risky security or employing such tactics as stop-loss order in shares trading. I think one needs to be well informed when investing and be very wary of the risks so as to minimise the impact to the investment.
5. Flexibility and Adaptability
It would perhaps be the most ludicrous thing ever to task Krishna with the inability to change his oceans of woes with his tides of situations . Whether dreaming and playing as a child in Vrindavan or wielding the sword as a warrior in Mahabharata, Krishna was always fit in some or the other context and was always a winner.
Investment Takeaway: The markets are dynamic thus to be a good trader one has to have the ability to adapt to the changes in the markets. This might imply asset reallocation due to changes in market status or for some other reasons at different intervals. One has to be flexible in his/her strategic actions, so that one cannot be vulnerable or lag behind while the other gains an opportunity to act.
6. Long-Term Vision: Proactively Seek the Larger Perspective
Krishna did have a long-term planning from the management of Pandavas’ to his own leela’s. Everything he did was for the greater good all the time, and this is why his actions were always so thought out.
Investment Takeaway: Another aspect that is very important in investing is in having a long-term vision, which enables an investor to look for the long-term instead of focusing on short gains. It reminds people that instead of swerving to focus on factors that affect the market today, one should work towards the achievement of their long-term financial objectives. For instance, retirement solutions or education solutions or real estate requirements usually entail long term vision to reap the benefits of the investment.
7. Spiritual Detachment
Some of the things that every investor should practise for them to be successful include; Yoga of action or Karma Yoga is indicated by Krishna as one of the principles of the Bhagavad Gita that means doing without desiring for the fruits of the action. Next, we see how this principle applies well with the world of investing.
Investment Takeaway: It is absolutely critical when investing to maintain control of one’s emotions. Hope and fear are fear and greed, and these are some of the worst emotions which one can use to make any investment. Since investors are able to avoid showing emotions in their trades they are easily able to stick to their analysis and plans and not be swayed by the daily changes in the market.
There are key lessons from Lord Krishna’s life and teachings that are not only spiritual but can be applied to the monetary aspect of life, namely investment. When applying these lessons in your investment portfolio management, you are able to achieve the following: greater confidence, discipline and success in the trading arena. So this Janmashtami, while remembering the birth of Lord Krishna, try to imbibe these investment lessons which can be useful for attaining financial success in your life.