Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Climbing Mt Everest and investing in equities

Author: Balaji Rao/Wednesday, September 26, 2018/Categories: Stocks, Markets

Climbing Mt Everest and investing in equities

I happened to accidentally meet my friend’s acquaintance who had just returned after climbing the Mt. Everest at a restaurant. The three of us sat together at a table and ordered for snacks. The discussion I had with the climber offered a new perspective about risk.

He was a first-time mountain climber with no prior experience or exposure to climbing mountains. He was never exposed to extreme cold conditions in his life and was not sure if he would return successfully from the arduous expedition.

When asked how he did it — he said he prepared well, planned the entire trip, read a few books on mountaineering, discussed with experts who had climbed in the past, understood the benefits of traveling in a group, to follow the guide and believe in his expertise, understand about managing risks and what to carry for climbing and more importantly know the ideal month to start the expedition.

However, even though he was explained about the possibilities of extreme circumstances that could occur, when he actually faced it he found the real situation very difficult. But he was happy that he could successfully overcome them. He said his guide and other experienced climbers in the group taught him patience and perseverance which was helpful and useful.

He explained that at times they had to stay inside the tents for many hours just waiting for the weather to get better without any idea of when the weather would get better and sometimes they did not have enough supply of food and oxygen but the tour managers supported well.

Finally he said it was a memorable trip that taught him many lessons about life, risk and management of situations and circumstances. He was beaming with confidence.

After this discussion with him I compared his experience with an investor in equity market and I realised there was hardly any difference in the overall experience.

The mistake is always pointed towards the equity market saying it is risky, volatile, uncertain and unpredictable without introspection. Before investing in equity (stocks or mutual funds) it requires preparation (identifying goals, setting return expectations, duration of staying invested), conducting research (both fundamental and technical), seeking expert advice (a good stockbroker, financial advisor), managing risk instead of trying to avoid it, whether to directly buy into stocks or take the mutual fund route (investing along with other people with similar objectives), be prepared for extreme market circumstances (extended bearish trends) and so on.

Climbing Mt. Everest is risky which every climber knows beforehand and their success depends on their planning, preparation and mindset. Investing in equity markets too is risky and for being a successful investor it definitely requires planning, preparation and mindset. Instead of blaming stock markets that it is risky, volatile and uncertain, it would be better to prepare well before and after investing and conquer the risk. Risk and success are blood brothers.  

The author has written 6 books on investing and personal finance. He has 23 years of experience and 6 years in academics

Print Rate this article:

Number of views (686)/Comments (0)

Balaji Rao
Balaji  Rao

Balaji Rao

Other posts by Balaji Rao
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free