Financial Lessons I learnt from Cheteshwar Pujara's Gabba innings!

Cricket lovely cricket: I love you. Markets lovely markets: I love you too.

Yesterday, I read an interview of Cheteshwar Pujara in TOI. Though he was talking about the Gabba test and about his determination, my mind kept making connections with what is happening in the financial markets with what he was sharing; more importantly learning how to bat like Pujara at Gabba. Hoping you relate to it too.

Pujara on being asked about whether his 56 at Gabba was his best knock, considering the pitch and attack (both verbal and with the ball):

“It was a tough innings. I can’t recall any innings in which I was hit all over my body so many times…..it was important that I don’t get worried about getting hit…..they were bowling short…sometimes you just don’t want to try and play with the bat…..so my strategy was simple: if the ball rises, I will make sure that I don’t mind taking the ball on the body. It would hit me, but I won’t get out.”

Financial markets today are like the pitch at Gabba and the Australian bowling attack. The conditions for investors are tough: inflation is 6-7%; the opposition relentless to keep interest rates low. SBI reduced the savings bank deposit rate to 2.9%. Imagine if you had Rs 10,000 in your bank. At the end of the year, you will get just Rs 290, and that too taxable. I work at Burger King. You may not be able to have a Whopper Combo Meal with that. Unlike Pujara who was knowingly taking the hit on his body, you may be taking this hit unknowingly.

For those who dabble in the stock markets, last week was even worse. Market was bowling short deliveries, pitch was cracking up, and it was tough out there. Be the great Pujara. Its okay. Let the stock market dish out the short balls. Take the hit on the portfolio. But be there. In the end, like India, you will win. Have the courage of the great Pujara. It is important to just be there. Spend time at the crease. Don’t give up. That’s a big lesson we can learn from Pujara.

Pujara on being asked about whether he ever thought of retiring hurt

Never: I kept telling I am never going to get out from here….I may have broken a finger…..I will try and bear the pain….and I carried on….this is the most important day of the series….

The message for me was that the markets may hit you and injure you sometimes, because that is the nature of the beast, but never give up. Keep telling yourself that you will bear the pain (this is the most important part). Most get out when they should stay invested. If you are a trader or use leverage, you don’t have a choice but to get out, but if are a long-term investor wanting the beat inflation and win, stay at the crease and bat on.

Have you heard of Rick Guerin? He was the third member with Warren Buffett and Charlie Munger who invested together. In the downturn of 1973-74, Rick was leveraged and when the markets tanked and he could not take the hit on his body like Pujara, he was forced to retire; sold his entire holding in Berkshire Hathaway to Warren Buffett at just under $40. Warren Buffett’s wealth then was just USD 19 million. Today it is USD 85 billion. It is grown by 4500x!

“Having and edge and surviving are two different things: the first requires the second.” Says Morgan Housel in The Psychology of Money.

What he said, Pujara demonstrated. “The bruises are still there, as is the blood,” said Pujara.

What about you?

pc1: news18.com, pc2: cricfit.com