Tuesday, June 1, 2010

The Only Thing To Fear Is Fear Itself

"Be fearless and pure" – Lord Krishna

That is one of the most powerful and beautiful things I have even read and it will help every investor to follow.

When I was writing Happionaire’s Cash The Crash (CTC), I remember writing in details how I was analyzing Indian Hotels (Taj Hotels) as the stock price had fallen due to the unfortunate terrorist attacks. I was personally buying Indian Hotels at around Rs. 36. I’m sure everyone must have read that and learnt how Balance Sheets and assets can be analyzed and studied. I exited most of my holding at Rs. 100, it was a classic case of value buying and surprisingly returns were got much quicker than expected (in around a year).

The reason I shared it in CTC for the public was not because I wanted to give tips, but because it was one of those opportunities that everybody should look at and learn from. The same way I had shared my views on Gold when it was at around Rs. 14,000 levels, not because it was a tip – but because anyone observing the world would have realized where things are heading. For instance now I will suggest everybody to read and learn about silver and see how it has moved over the years. The same thing that is happening with Gold, might happen with Silver. While Warren Buffett has known to not have too much liking for gold, I think we live in very dynamic times and need to adapt to a changing world. For instance 20 years ago, nobody would have believed you could invest just with the click of a mouse button.

I’m sure there might be many people who wouldn’t have made investment decisions out of fear and a lack of knowledge. People who might not have bought gold when it was at Rs. 14,000 or maybe would have missed investing in value stocks during the Crash.
One of my friends got very nervous when I told him about Indian Hotels, because he had heard analysts on business channels telling him how the company was doomed. He had a sizeable investment, which we sold in a panic at a loss. Had he held on, it would have been one of his most rewarding investments.

It is fear that makes people lose so much not just in investing, but also in life. A young boy who doesn’t profess his love, might lose a wonderful partner because of fear. A businessman, who doesn’t isn’t bold enough to speak about his product out of fear, might miss out growing. Someone working in a company who doesn’t get a well deserved promotion or raise, needs to speak up and demand what is rightfully his. A investor might miss out an excellent opportunity just because of fear. What is the use of life if it is constantly lived in a state of fear?

The only thing to fear is fear itself; because once you allow it to take control of your life you are sure to be doomed. I don’t want any of our Happionaires to ever fear anything because nobody can live a really happy and fulfilling life in fear. Every time we feel fear entering us and stopping us, we just need to close our eyes and think about God and how he is protecting us and on our side. Automatically fear will disappear.

Whenever I want to invest in something and am hesitant, I close my eyes and speak to God. He always gives me the right answer. Try it and with time, you will realize that God never lies and will always give you the right answers. Infinite knowledge is within us and even the greatest scientists in the world have accepted that we as humans barely use 2-3% of our brain power. Most people use less than 0.1% of their inner sub-conscious power. Let us try to tap into our energies within and speak with God.

I wish more finance courses, colleges, schools and MBA institutes taught students about the power of listening to God when in doubt and in fear and speaking to him. This would solve a lot of problems the world is facing. When I talk about God, I am not talking about only a particular form. You could be believing in any form of God. He is one and the same.

When God is on our side, we need to take actions without over thinking and without too much fear. Do your duty and don’t worry about the fruits. My prayers are with all of you to make sure that you investments are all profitable and happy!

Yogesh Chabria


RF said...

Hi Yogesh

Looks like you have stopped giving replies to comments. You have always emphasized that we keep our mind strong during crisis. I think the most common thing in the world is fear, and the most uncommon thing in the world is common sense.

Everybody Has a inner strength. I have it too, but atleast with regards to stock markets, I needed your views to align my mindset and "activate" that inner strength.

I am not of your religion, but the way you have explained things, I have learnt a lot about its meaning.

happy investing.

arjun said...

Beautiful words and have been following you Chabria ji since 2007. I wanted to just say something to RF ji - I think the whole point of the Happionaire way is to activate your inner power.

I for instance after reading about Gold, went and studied silver and found it out as an opportunity.

Dreamer said...

Thank you for sharing your views and knowledge. Its been fun following your writings for over a year. I must say, I have added a new dimension to my life. I have started to become more fearless about things and learned that God has been kind enough to give more than my needs. I never realized that I could create wealth for me to share it with others. :)

Appreciate you sharing your wisdom!!!


Sunil said...

Yogeshji ... well said ... "The only thing to Fear is Fear itself" and FEAR is the most common anxitey amongst all of us,because of this one freaking Anxitey lot of people miss out on good oppurtunities in life. I myslef have been thinking of getting into a business for a while now, but the fear of failure has been holding me behind. I guess at some point I will have to overcome my fear of failure and take a call. Yogeshji I have never really tried communicating with the god almighty when in fear, but I guess will give it try now

Yogeshji I was thinking of asking you a question on Silver, as the Gold-silver ratio was quite low a month back and besides 1 grm of silver cost much less then Gold, as Gold moves up it also drages silver along with it and I sense that the return on Silver will be quite high as compared to gold. Another interesting Commodity that we can look at is Crude, although we dont have any ETFs listed here in India, but there is this company, which was rightly described by someone as the cheapest crude producing company in the world. I guess when the dust settles down we can expect some commodities to touch its old highs, crude is one of them.

Santosh Mishra said...

Hi Yogesh

As a subscriber to your ideas,am glad that you wrote something on fear & all world one religion ,thats called Humanism.
Apprecaite ur thoughts & really all these thought show what kind of human you are.

Glad that you are sharing your knowledge with all & this quality of yours is really made me proud,coz this is what i believe & preach.

Pardon me for requoting your famous line with slight modification

A happier mind makes investing happy & enjoyable.

Dev said...


I have been following you and got correct many times as per your advice- be it is Indian Hotels or Gold.

Keep writing...

Shabu's said...

Dear Sir,

Let me rate this post as one of the best you ever made.

Samant said...

hi Yogesh,

What are your views about Gold ETF ?

Request other happionaire's also to share their views on Gold ETF vs physical Gold.. which carries significant 'carrying costs'.

The fear factor is mostly due to the fact that people are 'Once bitten and twice shy ' :)


CCGemini said...

Now you are regular,Keep this up...

The Happionaire™ Blog said...

RF - We all share the same religion and that is of love, humanity and peace. Inner strength will always come from inside and not from outside. The fact that you are here and trying to learn more, means you are on the right path. It will be activated soon.

Arjun - Thanks Arjun ji.

Paresh ji, the beauty of life is that once we start sharing more things grow more. It brings in an abundance in our life.

Sunil ji - God speaks to us all the time through his instruments, we just need to listen and speak back. I would suggest physical silver/gold as much better than an ETF. It is hard solid and can be kept in your safe deposit locker.

Santosh ji- Very well put and I am very happy when knowledge here is shared. You are free to share it.

Dev ji - Thank you. But please use it as examples and hunt for more opportunities on your own also.

Shabhu's ji - Your words made me smile.

Samant ji - Physical gold is what I would go for because it is simple, easy, safe and in front of our eyes. Mistakes and failure should not stop us from learning - they should inspire us and motivate us to learn more.

CCGemeni ji - Thank you.

Yogesh Chabria

Sri said...

Hi yogesh,

I have been following you for a long time, i really like your clarity of thought. thanks a ton.

i would like to buy physical gold/silver as do not believe in ETF's.
1)if you could provide what is the type of gold/silver that i can buy 2)and a reliable place to buy.
3)Also like to know prices for gold and silver where i can enter.
i have searching for information for a long time but unable to get it.


Dr. Batra said...

Hello Chabria ji,

Pleasure reading your comments here and I like several others here have been following your views for several years now. Just wanted to take time and thank you for not just making us all wealthier, but also adding a smile on our faces and making us proud of India. Thanks.

Samant said...

hi Yogesh,

I think an interesting topic to research would be on "would Uncle sam become a silent grand dad" :)

I doubt.. i think clearly US has identified a plan wherein they want to be become the 'New England '.. ie.. capture regions in the world which have rich natural resources...

see this

After Iraq , now its 'pay time' for Afghanisthan. Africa has been doing this for years now ..silently.

Guess all kinds of minerals and commodities will regain focus and value .. and US surely has done its homework and is already on its way to capture and conquer regions which have abundance of natural resources.. even a lot of INdians are doing commericial farming in Africa now.

Guess for us, its time to identify such companies and invest in them.
Not sure if they can be classified as "blood diamond" companies... what do you think ?