Dear all, I’m not familiar with people who’ve chosen equity investing as their vocation. When I came across a person, at a social gathering, involved in investing full time I couldn’t be happier. The person is a childhood friend of a very close relative of mine. To simplify the narrative let’s address him as Mr. A.
I requested my relative to facilitate an interaction with him. Mr. A was kind enough to grant an amateur like me a hearing.
I was accompanied by my relative who was the intermediary.
We spoke at length. He was generous enough to share his experience in various fields of life. There were aspects in our conversation that, in my humble opinion, are relevant to investing.
I’ve tried my best to distill the discussion.
If I err my apologies.
About Mr. A-
Mr. A is a person in his early 50s. He, since childhood had been a decent performer at academics. He excelled in his matriculation exams. As a result of that, he was granted admission at a decent engineering college.
Thanks to his impressive graduation scores he was offered a job at a leading electronics technology company. He was 22 then - 30 years ago.
He began saving from the word go. He would invest a major portion of his income in stocks. As time passed, he matured, developed an interest in investing. He had the willingness to learn more on investing. He commenced his equity related knowledge acquisition pursuit. The pursuit began when he was 23 years of age. It’s still on. In the meanwhile he got married. While he was still learning he had been investing small amounts in the well known multinationals of those days.
He worked at the firm for 26 long years. He did well for himself- Earned well, reached a senior managerial position. All in all, he had a cushy job and a desirous life. Everything was great.
Until, one day, he realised that he was nothing but a cog in the massive corporation. He felt that his life lacked meaning. There was a lack of satisfaction, happiness. He thought that investing could provide meaning to his life.
Did it? He answered it in the later portion of our interaction.
I had always thought that materials would bring happiness. But, this conversation changed my thoughts. It changed, to a certain extent, my perspective of life.
Finally, 3 years ago, after consulting with his immediate family members he decided to tender his resignation. Initially, there was resistance from his relatives. But, he assuaged their concerns and took the plunge. Also, it’s pertinent to note, that by the time of his resignation his children were about to complete their education and become independent.
THE INITIAL PHASE OF FULL TIME INVESTING :
He began by saying that it was tough. There was too much time and too little work.
He would read annual reports, books on investing, reports from financial services companies. He read everything that he possibly could. He spent almost the entire day restricting his activity to his study. And, then made some more investments. Investments in addition to his previous investments. For the first 90-100 days his schedule was exhausting.
But, as usually happens, when you start with too much energy, eventually you experience burnout.
After 5 gruelling months he experienced the same problem- Lack of meaning, lack of happiness. He was confused. He was doing what he enjoyed- Full time investing. Yet, he was unhappy. Financially, he was stable. But, plagued by aimlessness.
THE 3 MONTH TRIAL
Now, what could he have done?
He thought of giving this process 3 more months. If he didn’t feel better he would resume his job.
He tweaked his schedule a bit. Now, instead of reading books by himself, he collaborated with people who had already retired. They would meet, discuss stocks and everything under the sun that impacted stocks. The people involved were veterans in the field.
After interaction with experienced investors he would interact with those who were beginners. He would guide them, teach them.
Also, he began practicing Yoga.
He would think for hours together. Just think.
He also expanded his reading to topics as diverse as archaeology and travelling. He began reading everything. He has a tremendous collection of books.
He introduced drastic changes in his lifestyle. Cut down on all unnecessary expenses. Tried to live a frugal life. Initially, it was tough since he was used to conveniences. But, he had resolved to shed his dependence on these objects.
In brief, he began to live a minimalistic life. His expenses went down significantly.
At the conclusion of this 3 month trial period, was he happy? He asked me to hazard a guess. I responded that he must’ve been unhappy and craving the luxurious life he lived some time ago.
He told me that I was wrong. He had never been happier. He experienced true joy. Bliss that his fat paychecks could never give him.
By helping others he found meaning. By practising Yoga he found peace. By becoming a minimalist he found freedom.
The words he shared now had a lasting impression on me -
We believe we are constantly in the pursuit of money. But, we don’t want money per se. We want the power to acquire materials. When you minimise the need for materials you simplify life.
Often, luxury becomes a necessity. Once that happens, we become subservient to the job.
The more we get the more we want.
He explicitly mentions that a lifestyle devoid of materials is tough- It isn’t for all.
He tried it and he embraced it.
It’s been 4 years since he left the job. He hasn’t been happier. His investments have done reasonable well. But, it’s not of much use to him now. His needs are few. He has become benevolent. Finally, he has a reason to wake up in the morning with a smile. He ends the day with a smile. His life is simple but there’s satisfaction.
He explicitly mentioned that had he asked a financial planner before leaving his job he would’ve been discouraged to do so. But, it worked out well for him.
He concluded by saying - It’s not always about the money. Ensure that you have enough for your needs. For your luxuries you will never have enough.
He had finally found meaning and satisfaction- Though not in investing.
A truly remarkable personality. He isn’t a celebrated investor. He’s a common man with an incredibly journey of discovery.