INVESTING LESSONS FROM TOKYO OLYMPICS

21 Aug 2021by Research & Ranking

INVESTING LESSONS FROM TOKYO OLYMPICS

The recently concluded, Tokyo Olympics has been exceptional in so many ways. Held in the midst of uncertainties and fear brought on by the pandemic, the Tokyo Olympics after getting postponed by a year was definitely one of the most challenging Olympics to date. However, despite these setbacks, it was by far the best in terms of performance and medals tally for India, with seven medals – one gold, two silver, four bronze and enabled India stand 48th in medals tally, its best ever position.

The Golden Moment
For a country that had been waiting for its first-ever Olympic medal in athletics, Neeraj Chopra, the confident
23 year old bagged a gold on 7th August in the men’s javelin throw competition, a truly heartwarming
moment for India as we got a gold after 13yrs in Olympics, last being Abhinav Bindra in 2008

     


  1. Start early and lookout for potential winners
    A bit of trivia here. At the age of 11, Neeraj was chubby and he weighed around 80kgs. Worried about his weight, Neeraj's father had taken him to a stadium to join some sports that could help him get fitter. After watching a few men throwing the javelin, he decided to try it too. Chopra's first javelin throw without any training was close to 40m and this impressed Jaiveer, a young javelin trainer himself who then trained Neeraj in the sport. This is when Neeraj Chopra began his javelin journey and the rest is history. In the context of investing, most wealth can be made by identifying current small/midcaps who could be future large caps. Also like Jaiveer identified Neeraj’s talent at the age of 11 years, one needs to start early in investing as that increase the probability of reaching financial independence at a young age through power of compounding. A majority of new client additions by various brokers in the last one year has been under the age of 30.



  2. Choose a suitable investment coach
    Hiring an investment advisor is equivalent to hiring a professional coach for a sports athlete. Neeraj Chopra undertook professional training from various coaches over a period of time, as every coach had his own method. Eventually he stuck to the one whose technique and teaching method suited him and which impacted his performance immensely. Likewise, our choice of financial advisor should be influenced by our investment style whether as a trader or a long term investor. For example, over 20,000 investors have chosen Research & Ranking as their financial advisor for long term wealth creation.

  3. Constant focus on training
    Neeraj Chopra underwent rigorous training to build strength and endurance by focusing on exercises to improve balance and tone the muscles apart from improving core strength. Similarly an investor should remain informed and educate oneself to have an edge over others with a view that ‘Investment in knowledge pays the best interest’. There are many avenues to achieve this- reading books on investing, undergoing finance/investing courses online, subscription/exposure to newsletters, webinars, blogs, periodicals etc.

  4. Select right and sit tight by adopting patience
    The enormous might of Neeraj’s performance was achieved by throwing the Javelin for seconds, but the strength was built over 10+ years of rigorous training since he first signed up for the sport in 2011. Similarly, once you have identified a fundamentally strong stock, placing the buy order with broker will only take few seconds but the returns of the same investment will be realized to the fullest if one lets time (multiple years) and power of compounding do its magic. To illustrate, stocks such as Bajaj Finance, Berger Paints, Page Industries and Atul Ltd gave a return of 10-30x over the last decade.