The Bhagavad Gita, one of the most revered texts in Indian philosophy, offers timeless wisdom on life, duty, and self-control. Though its teachings are spiritual, they also provide valuable lessons for the world of investing. By drawing from its principles, we can learn to manage our emotions, practice discipline, and make better financial decisions. Let’s explore how the teachings of the Gita can guide us in navigating the ups and downs of the investment world.
1. Detach from the Outcome (Nishkama Karma)
One of the central teachings of the Bhagavad Gita is Nishkama Karma—performing one’s duty without attachment to the results. In the context of investing, this means focusing on making sound, informed decisions without obsessing over the short-term outcomes.
Story: Capt Vikas and the Long-Term View
Capt Vikas, a young officer, started investing in the stock market. His strategy was solid—he invested in diversified mutual funds and focused on long-term growth. But as soon as the market dropped, he became obsessed with checking his portfolio every day. When his investments dipped by 10%, he sold everything in a panic.
Had Capt Vikas embraced the principle of Nishkama Karma, he could have focused on his investment strategy rather than stressing over temporary/notional losses. By remaining patient and detached from short-term fluctuations, he would have benefited from the market’s eventual recovery.
Investment Lesson Like Capt Vikas, many of us become too emotionally attached to market outcomes. The Gita reminds us that investing is a long-term commitment. Focus on sound decisions and strategies, not on daily market shifts.
2. Maintain Equanimity (Samatvam) in all Situations
The Gita emphasizes the importance of remaining calm and composed in both favourable and unfavourable situations—this is known as Samatvam or equanimity. In investing, market highs and lows are inevitable. Instead of reacting with fear or greed, successful investors maintain composure and make decisions based on rationality, not emotion.
Story: Sara and the Market Crash
Sara, a middle-aged teacher, had been investing steadily for years. When the market crashed in 2020 due to COVID-19, many of her colleagues panicked and sold their stocks. Sara, however, stayed calm. She had experienced market drops before and trusted that staying the course would pay off in the long run.
By practising Samatvam, Sara remained composed during the black swan crisis, understanding that market ups and downs are part of the cycle. Her discipline paid off when her portfolio rebounded and grew even stronger.
Investment Lesson Instead of reacting emotionally to market fluctuations, the Gita teaches us to stay calm and maintain composure, knowing that both success and failure are temporary. Equanimity allows us to make rational decisions during volatile times.
3. Accept Uncertainty (Embrace Impermanence)
The Bhagavad Gita teaches us that life is full of uncertainty and change. Nothing in this world is permanent, and the same applies to financial markets. Markets rise and fall, but no phase lasts forever. The Gita advises us to accept this impermanence and not resist change.
Story: Suraj Bhan’s Bitcoin Boom
Suraj, an IT professional, invested heavily in Bitcoin during its rapid rise in 2016-17. As the price skyrocketed, he believed the growth would never end and that Bitcoin would continue its upward trajectory indefinitely. However by 2018, the cryptocurrency market crashed, and Suraj Bhan lost a significant portion of his investments.
Had Suraj understood the Gita’s teaching of impermanence, he would have recognized that markets are cyclical, and no asset continues to rise forever. By embracing this truth, he could have prepared for the downturn and made more cautious investment decisions.
Investment Lesson The Gita teaches us to embrace change and recognize that both gains and losses are temporary. Markets fluctuate, and accepting this truth allows us to invest with a long-term perspective.
4. Practice Self-Discipline (Karma Yoga)
In the Gita, Lord Krishna emphasizes the importance of disciplined action, which means performing one’s duty with commitment and focus. For investors, this principle translates into the need for a disciplined, consistent investment approach, rather than chasing short-term gains or speculative trends.
Story: Rajesh’s Investment Plan
Rajesh, a 40-year-old architect, created a disciplined investment plan focused on regular contributions to his retirement fund. When the stock market soared, many of his friends shifted to high-risk investments in pursuit of quick profits. Tempted, Rajesh considered following suit but ultimately decided to stick to his original strategy.
Years later, Rajesh’s friends suffered significant losses when the market corrected, but Rajesh’s disciplined approach allowed his portfolio to grow steadily over time. By practicing Karma Yoga, he remained committed to his long-term plan rather than chasing short-term gains.
Investment Lesson Just as the Gita teaches us to perform our duties with dedication, investors should remain disciplined and committed to their strategy. Success in investing comes from consistent effort, not from impulsive decisions.
5. Control Over Desires and Emotions (Mastering the Mind)
In the Gita, Lord Krishna explains that the key to success and peace lies in controlling one’s mind and desires. This is especially relevant in investing, where emotional decision-making—driven by greed, fear, or FOMO (fear of missing out)—often leads to poor outcomes.
Story: Johny’s fear-driven Decisions
Johny, a 55-year-old business owner, had built a strong investment portfolio over decades. But when the COVID-19 pandemic hit, fear overwhelmed him as the market plummeted. Convinced that his savings were in danger, he sold his investment portfolio at the market’s lowest point.
Months later, the market recovered, and Johny regretted his decision. Had he controlled his emotions, as the Gita teaches through Vairagya, he would have stayed invested and his portfolio would have given him great returns.
Investment Lesson The Gita teaches us to manage emotions like fear and greed, which often drive poor investment decisions. Successful investors recognize their emotions but don’t let them dictate their actions.
6. Do Your Duty Without Comparing to Others (Svadharma)
The Gita stresses the importance of Svadharma—focusing on one’s own duty without comparing oneself to others. In the world of investing, this means crafting a financial plan that fits your unique needs and goals, rather than following the crowd or comparing your portfolio to someone else’s.
Story: Major Gaikwad and the Peer Pressure
Major Gaikwad, a young professional in the Indian Army, felt pressure to invest in stocks because his coursemates were making significant gains by investing in stocks. He didn’t understand the risks involved but didn’t want to feel left behind. After making a few hasty investments, he lost money when his investment stocks started going down.
Had Gaikwad followed Gita’s principle of Svadharma, he would have focused on his own financial goals and not been swayed by others. By aligning his investments with his personal risk tolerance and time horizon, he could have avoided unnecessary losses.
Investment Lesson The Gita reminds us that each person’s journey is different. In investing, focus on your own financial plan and goals, rather than getting distracted by what others are doing.
7. Take Responsibility for Your Actions (Karmic Accountability)
The Bhagavad Gita encourages taking responsibility for one’s actions and accepting the consequences, whether good or bad. In investing, this principle translates into being accountable for your financial decisions—whether they lead to gains or losses.
Story: Jolly’s Accountability
Jolly, a freelance career consultant, made a series of risky investments without doing proper research. When her portfolio underperformed, she blamed the market and her friends who gave her the tips to invest. However, after reflecting on the Gita’s teaching of personal responsibility, she realized that her decisions were the root cause of her losses.
By acknowledging her mistakes, Jolly took responsibility for her future investments. She began educating herself about the market and hired a proficient financial advisor to help her make sound investment decisions.
Investment Lesson The Gita teaches us to take ownership of our decisions. Investors must recognize that their actions, not external factors, ultimately determine their financial success.
Conclusion: The Path of Wisdom in Investing
The Bhagavad Gita offers timeless insights on how to live a balanced, disciplined, and mindful life. When applied to investing, its teachings encourage a calm, focused approach that avoids emotional traps and embraces the realities of market fluctuations. By focusing on discipline, detachment from outcomes, and control over emotions, we can make wiser investment decisions that align with our long-term goals, regardless of market conditions.
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