No Formula, No Free Lunch & No Rescue Boat

Vitally Important, Rarely Taught

When I first got interested in investing in the stock market, I started with a lot of enthusiasm.

I thought - “How hard can this be? I am sure I can learn”.

Yet, that enthusiasm soon crashed when I got gripped with the fear of missing out (FOMO) as I watched others making money effortlessly while my own strategies faltered.

I then started watching financial news channels like CNBC. I wanted someone to tell me which stocks to buy.

After all, who wants to learn how to fish when someone can tell you where to cast your net. I wanted an easy ways to make some quick money. Quite foolishly I started acting on tips.

I am sure you can guess the result.

Yes, I lost money.

It became painfully clear to me that stock market is the most expensive university in the world.

Despite this setback, I failed to internalize the lesson and found myself repeating similar mistakes. This time I started looking for shortcuts.

As I learned, shortcuts rarely lead to sustainable success, neither in the markets nor in life. Because if shortcuts worked as promised, they wouldn’t be shortcuts, would they? They would be the norm. Shortcuts are a trap.

Following my initial setbacks, I resolved to understand how the masters of the game operated. I delved into the wisdom of investing legends like Warren Buffett and Peter Lynch, hoping to gain insights into their methods. While this study helped me appreciate the importance of thorough business analysis and long-term investment strategies, I still found myself falling short of expectations.

It was then that I encountered a profound realization articulated by Naval Ravikant: "I can't watch Roger Federer play tennis and then swing the racket the same way. Nor will any description from him on how to swing the racket get me to swing it the right way."

I understood that Mr. Buffett's investment philosophy was not something I could simply copy. Sure, I could extract valuable principles from his approach, but true learning requires experimentation, practice, and personal conviction.

This is true because we are all unique individuals shaped by our distinct experiences and perspectives. We understand the world differently.

That’s why, what works for one may not necessarily apply to you.

Similarly, while you may be able to get a few ideas from my experiences, it's essential to tailor them to your own circumstances and beliefs.

Ultimately, success in the stock market, like in life, demands a personalized approach forged through action → introspection → and adaptation.

In short, we have to “Figure things out on our own”.

No Formula

I am sure someone - whether your parents, teacher, boss or a friend - would have told you that there are no formulas in life.

The world is a very dynamic place and the only survival tip I can offer is to - observe, learn and adapt.

Sure, there can be some hacks that work. But if you are trying to do something meaningful then the beaten path won’t get you far.

There is no formula for getting rich, or getting fit or coming first in a race.

We can’t simply plug numbers into a formula and expect it to spit out success.

All that we need to consistently perform simple actions over the long-term. Period.

Try it!

No Free Lunch

In school, I read a story about a squirrel who was happy and playful during spring. She mocked all the other squirrels who were busy storing food for the winter season. As summer was coming to an end, it dawned on her that she too needed to stock up on food. So, she asked some friends to do it for her. When winter finally set in, and everyone retreated to their burrows, to her horror, she discovered that her friends had not stocked any food for her.

We want a certain thing and then we wait for someone to do it for us.

Life doesn’t work that way.

You can't get something for nothing – everything has a cost or consequence, and nothing is truly free.

No Rescue Boat

Imagine you're in the middle of a large lake, and instead of swimming to the shore, you're waiting for a boat to come and rescue you. Well, in real life, there's no rescue boat coming.

Don’t wait for Prince Charming to salvage you.

Don’t play the victim.

Stop waiting to get picked. No one is going to call you.

You need to save yourself. Be a survivor. push forward. Don’t give up. Keep persisting.

If you failed once doesn’t mean that you will fail again.

Get working and things will change.