Saturday, 26 February 2022

Equity Investments are just like growing Chinese bamboo.

Equity Investments are just like growing Chinese bamboo.

 Both require lot of patience and time to grow.

Unlike other trees, growing Chinese bamboo requires lots of time and more passion.  It takes 5 years and 3 months (almost 63 months) for Chinese bamboo to grow to the height of 80 feet. So, what’s so unique about this tree? 

At 80 feet, not just the height to which Chinese bamboo tree grows is unusual, but the way it grows is even more so.  For almost 5 years, you keep watering the place where you have planted the seed of Chinese bamboo on a daily basis without fail, but you don’t even see a shoot growing out of the soil. 5 years of watering and passion!!! Huh!!! That’s long time. Still during all this time, you see nothing but just a small sprout coming out of land which can be measured to couple of inches if you are lucky. In many cases nothing’s visible above the ground for 5 years. After 5 years you can see the first sight of the small green bamboo trying hard to coming out of soil, and that small bamboo which gave its first appearance after watering the soil for 5 years, grows to 80 feet in less than 90 days. Yes, it’s true. 

Sometimes the waiting period fluctuates from 4 to 6 years, but the sure thing about the Chinese bamboo is, it’s definitely going to start growing and once it starts growing the speed is definitely going to be unusual. It definitely will reach the height of 80 feet from ground zero, which is equal to an 8-storey building, in the short period of 6 weeks to 12 weeks.

There are great chances of person quitting the idea of growing Chinese bamboo due to the long waiting period. Everyone can find the soil and plant the seeds and also can start watering it, but when it comes to waiting, sooner or later many drop the idea. Only few who keep watering the soil consistently with full faith, can get the 80 feet high bamboo tree.

Equity investment is also like growing Chinese bamboo tree. One should have passion after planting the seeds. Now we all know that the Chinese bamboo tree takes a time to start growing but once it starts, it grows rapidly to 80 feet. The same way, in case of equity investment also we all know that after investing you should wait for long time but in practical world very few have got that patience to wait it out. 

You to be very disciplined in watering the plant i.e. in regular investments.  In the beginning, neither the market nor your investments could be moving anywhere. In fact, they could start falling and eating away the value of your money. You still wait... And wait.

Year one is over and you are entering the second year.  You are still watering but started becoming a little bit of skeptical about the power of your investment seed to grow. Anyway, you have heard about so many other success stories about many successful people who also invested in the same market and made their fortune. So you kept on watering the seeds by regularly investing in it.

Now, it has been three years and you started wavering and doubting about your choice of investment seed. Some voice inside of you has started telling you that you are a special fool to believe in something which was too farfetched. You start thinking about other possible seeds which you might have planted instead of equity. You wonder why you had to pick up an equity investment only.  You start losing sight of your purpose and your faith starts to diminish…You decided to re-commit yourself for the entire third year.

Now you’re entering into the fourth year. You are becoming more disillusioned and are experiencing a deeper sense of doubt, regret, frustration and anger.  You started wondering,

“Is it when I invested was a wrong time?” or

“Perhaps, I am not Lucky.”

You were going crazy, because you’ve already spent a lot of time and invested a lot of money. So after the years of lot of dedication and effort toward this investment, you have decided to give it a chance for one last more year. 

Finally it is 5 years and you feel they were wasted because you kept on regular watering by investing in it every month, but alas! Nothing happened. So you decided to QUIT and withdrew your money with no or little profit, perhaps less than the interest of bank fixed deposit.

They day your quit, the equity market starts taking small upward leaps, and you wonder what’s happening. Within couple of years the bamboo (equity category) starts growing rapidly and grows to newer heights but unfortunately you couldn’t get anything out of it.

Equity is just like the Chinese bamboo, it’s possible that it doesn’t give you any return for years but then in a very small period of time, it starts growing with an unusual and unbelievable speed which eventually compensates you and your client for all your dedication, passion and faith.

Always remember that equity will never deliver the returns in a linear fashion. Your equity investment might take a time to grow, but once they grow they grow like a Chinese bamboo.

Be faithful and keep watering you Chinese bamboo tree (Your Mutual Fund investments).

Mutual Fund Investments are subject to market risk, Please read all scheme-related documents before investing.

Raja Bhattacharjee/9830146206

investment.junctions@gmail.com

https://linktr.ee/investmentjunctions



 

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