I am writing this series of letters on the art of investing, addressed to a young investor, with the aim to provide timeless wisdom and practical advice that helped me when I was starting out. My goal is to help young investors navigate the complexities of the financial world, avoid misinformation, and harness the power of compounding by starting early with the right principles and actions. This series is part of a joint investor education initiative between Safal Niveshak and DSP Mutual Fund.
Dear Young Investor,
I hope you are doing well, and that the lessons we have covered so far have been helpful in guiding you through the early stages of your investing journey.
In my previous letter, I wrote about the art of waiting—about how patience can be one of the most powerful tools in investing. Today, I want to talk to you about something just as powerful but perhaps more challenging.
It is about the importance of “standing alone.”
“Standing alone?” you may be wondering. “But I came here for investing lessons?” Well, wait. I will soon come to that, but before that, here’s a quick backstory.
When I started investing 20 years ago, the world was a quieter place. We had the Internet, but things were relatively calmer and slower, a bit like our Internet speeds back then. Facebook, Twitter, and Instagram were not around. There were rare stock discussion forums, but investing was more of a private affair. You’d make your choices and maybe share a few ideas with a friend, but you weren’t bombarded by a constant stream of everyone else’s opinions and weren’t criticised for your own.
Things have changed drastically over these last 20 years—both for the better and worse. We are now dealing with a world that’s incredibly noisy—a world where everyone has an opinion, and opinion on other people’s opinion, and where every decision and mistake seems to be under a spotlight. Amidst this, standing alone might feel strange, even a bit brave, but it’s also more necessary than ever.
But what does ‘standing alone’ really mean?
First, here’s what it doesn’t mean—isolating yourself from everyone else, ignoring advice, or thinking you’re the only one with the answers.
Standing alone is about recognising that, in investing—as in life—you’re ultimately responsible for your choices.
It’s about the willingness to make decisions that are right for you, even if they don’t align with what everyone else is doing.
It’s having the independence to think critically, question what’s popular, and resist the temptation to follow blindly.
It’s the courage to trust your own judgment and values, even when it feels like you’re the only one seeing things that way.
In Chapter 20 of The Intelligent Investor—a book I recommend you read—Ben Graham wrote:
Have the courage of your knowledge and experience. If you have formed a conclusion from the facts and if you know your judgment is sound, act on it—even though others may hesitate or differ. (You are neither right nor wrong because the crowd disagrees with you; You are right because your data and reasoning are right.) Similarly, in the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand.
Investing can feel like a team sport, with everyone hyped about the latest stocks or market trends. After all, there’s comfort in the crowd—until you realise how risky that comfort can be. But when you’re leaving your own judgment aside and following the crowd, you’re following others’ logic and goals.
Standing alone, though, means taking a step back and asking yourself, “Does this make sense for me?” That moment of pause can be all it takes to avoid a costly mistake.
Now, as Graham subtly mentioned, to truly stand alone, you need more than just knowledge. You need the courage of your conviction. And conviction isn’t the same as stubbornness. Real conviction builds slowly, decision by decision, as you gain understanding and experience.
It’s about knowing your investments deeply, so you’re not easily swayed by the latest hype or panic. Conviction keeps you grounded. It lets you stick with your own thinking, even if it feels like everyone else is doing something else.
The Sketchbook of Wisdom: A Hand-Crafted Manual on the Pursuit of Wealth and Good Life.
This is a masterpiece.
– Morgan Housel, Author, The Psychology of Money
If I were to take a quick detour into philosophy, in many ways, investing is a journey into self-awareness. And self-awareness can take place only in moments of aloneness, of standing alone.
Over time, it reveals your tendencies, your fears, your greed, and your impatience. You start noticing patterns: Are you too quick to jump on what’s popular? Do you panic when the market or your stocks decline or hold on longer than you should? The market, in its way, teaches you about yourself. And if you’re willing to learn, it can become one of the best teachers you’ll ever have.
Knowing your strengths, weaknesses, and blind spots helps you make better decisions. If you understand your own impatience, you’ll be more mindful about making impulsive investment decisions. If you’re aware that you tend to be overly cautious, you might nudge yourself to take a bit more risk where it’s appropriate. The more you understand yourself, the more capable you become to handle the pressures and pitfalls that come with investing.
So, in a way, self-awareness turns investing from a game of reaction to a process of thoughtful action, giving you the stability to stick with your investment strategy, adapt wisely when needed, and avoid emotional swings. Also, each decision you make as an investor becomes a small step in understanding yourself better, and in the end, that self-knowledge becomes a cornerstone of how you behave over time.
So, here’s my advice: start practising being alone with your thoughts and decisions—including in investing—while you’re young. Even when you are in a crowd, learn to take a step back, to reflect on your own choices without the constant buzz of other people’s opinions.
While having an ‘investing’ friend, or a close group of friends to talk to is a good idea, standing alone gives you that space to think clearly, to make choices based on what feels right for you, not just what’s popular. And in that quiet space, you’ll find insights that can’t be found in the noise.
Standing alone also means taking accountability. When things go wrong, as they sometimes will, you won’t have anyone else to blame. It’s easy to point to the market, or bad timing, or even a friend’s suggestion. But accountability is a cornerstone of independence. Owning your choices, both the wins and the losses, makes you a better investor.
Over time, standing alone will also help you develop your personal investment philosophy—a set of principles that reflect who you are and what you believe in. This philosophy doesn’t come together overnight, but is shaped by your learnings, experiences, and goals. Maybe your focus will be on long-term growth, or maybe stability and income. Whatever it is, once you find it, your investment philosophy becomes your compass, guiding you through uncertainty and helping you stay grounded during good times and bad.
I mentioned it in an earlier letter, but it’s worth repeating that investing is a personal journey. It’s not just about numbers but about what you want for your future, what aligns with your values, and what kind of investor you want to be.
So, remember, as you take your next steps on this journey: learn to stand alone. While that may sound daunting in a “social” world, I can say from personal experience that it’s also freeing.
You’re not following the crowd but building a path that reflects your unique goals and understanding. There’s a deep satisfaction in that.
And in this world where being alone is a fading skill and is sometimes looked down upon, take the time now to nurture it. In those quiet moments, you’ll find clarity and strength—the kind that doesn’t come from the crowd but from within. That’s where the freedom lies.
Before I end, here’s something profound I heard Naval Ravikant telling Shane Parrish on his podcast in 2017:
Socially, we’re told, “Go work out. Go look good.” That’s a multi-player competitive game. Other people can see if I’m doing a good job or not. We’re told, “Go make money. Go buy a big house.” Again, external monkey-player competitive game. When it comes to learn to be happy, train yourself to be happy, completely internal, no external progress, no external validation, 100% you’re competing against yourself, single-player game. We are such social creatures, we’re more like bees or ants, that we’re externally programmed and driven, that we just don’t know how to play and win at these single-player games anymore. We compete purely on multi-player games.
The reality is life is a single-player game. You’re born alone. You’re going to die alone. All of your interpretations are alone. All your memories are alone. You’re gone in three generations and nobody cares. Before you showed up, nobody cared. It’s all single-player.
Investing, like life, is a single-player game. You play not to win against someone else, but because you enjoy playing. And yet, each choice can feel like standing alone, trusting yourself amidst the noise.
As they say, “The journey of a thousand miles begins with a single step.” One investment, one virtuous habit, one choice to play the long game, and you are on your way to financial freedom and a life of wealth, material and otherwise.
I wish you all the best on this exciting journey. May your investments compound, your knowledge grow, and your life be rich in all the ways that truly matter.
Warm regards,
Vishal
Disclaimer: This article is published as part of a joint investor education initiative between Safal Niveshak and DSP Mutual Fund. All Mutual fund investors have to go through a one-time KYC (Know Your Customer) process. Investors should deal only with Registered Mutual Funds (‘RMF’). For more info on KYC, RMF & procedure to lodge/ redress any complaints, visit dspim.com/IEID. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Also Read: