Nilesh Shah, MD of Kotak AMC, emphasizes the importance of balancing greed and fear in the crypto market. He advises readers to maintain equilibrium and follow five key principles:
1. Income minus savings equal to expenses.
2. Regular investment.
3. Long-term investment.
4. Disciplined investment.
5. Equilibrium between greed and fear.
Independence, according to Shah, means different things to different individuals, companies, and nations. For individuals, it means the ability to do what they want without depending on others financially. For companies, it means being globally competitive without subsidies or crutches. For nations, it means the ability to do what they want for their citizens without worrying about the rest of the world.
Shah acknowledges India’s struggle to catch up with its peers in terms of economic development. However, he also highlights India’s recent acceleration in growth, moving from the 10th to the 5th largest economy and increasing its market share in global GDP. While there has been progress, Shah recognizes that there is still a long way to go, especially in addressing the needs of the majority of the population.
Shah credits the development and growth of India to its entrepreneurs who have overcome various challenges. He sees them as modern-day heroes who have created growth in industries like two-wheelers, generic pharma, and IT services. He believes that India’s success lies in replicating this entrepreneurial spirit across other industries.
Shah considers himself financially independent but acknowledges the responsibilities that limit his freedom. He believes that financial independence is both easy and complex. It is easy because everyone needs basic necessities, but complex because many Indians are still anchored in a mindset of deficiency and struggle. He encourages regular investment, long-term planning, diversification, and maintaining equilibrium between greed and fear.
In terms of his own financial habits, Shah admits that he is still driven by emotions and needs to work on maintaining rationality. He compares this to Sourav Ganguly’s development of his weaker onside in cricket, emphasizing the importance of mastering and balancing both natural tendencies and emotions in decision-making.
Overall, Shah’s advice is relevant to the crypto market and encourages readers to approach investments with a balanced mindset and long-term perspective.
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