Sam Bahadur & the Art of Investment Management

An ode to a true Post Independence Hero

In school, our history textbooks teach us about the heroic tales of several Indian freedom fighters. But do we know about those real-life heroes who helped shape the course of India post-independence? People who watched the film, Sam Bahadur, may know what I’m talking about. But if you’re one of those who hasn’t watched the film yet, I’d urge you to learn more about this great personality.?

In this blog post, I’d like to address the thin line between Heroism and Investment Management. You may be wondering and looking for a correlation here. But let me tell you, on a personal level, there is so much inspiration I could muster from Sam Bahadur’s life.?

Sam Bahadur’s story and his life offer inspiration like no other. His life has inspired me to delve deeper into my own understanding of Investment Management. I’d like to share my inspirations with the world and modify the subject in Sam Bahadur style.?

Let’s take a closer look at this great Field Marshal’s life:?

Feel closely, Understand wholly, and Act smartly

During the India-Pakistan partition, Sam Bahadur and Yahya Khan were close friends and the news of the partition shattered them. Yahya Khan felt the pain of separation, but couldn’t gauge its impact, and was not ready to accept the new reality. However, during the early period of the 1971 Bangladesh War, Yahya Khan felt the turbulence, and acted on an impulse by ordering attacks on India and sparking the war.?

In both cases, Sam Bahadur acted maturely by acknowledging the differences, and strategizing his approach plan. He acted smartly and adapted to the ever-changing environment instantaneously.?

Similarly, in making investment decisions, when you feel a gust of wind changing the environment, dig deeper to understand the cause and its impact. Replan your course of action accordingly. Merely feeling the change and not realigning your goals may cost you dearly.?

Don’t Underestimate the Rules

During the pre-independence period, Sam Bahadur was given the difficult task of protecting a bridge from the Japanese army. Though Sam’s army size was small and the task at hand was menacing, he devised a thumb rule to strengthen his team’s morale. He informed his team members to take the dead and injured soldiers back to the camp only after winning the battle. Unfortunately, during the battle, Sam Bahadur was shot 5 times. Despite being wounded, he asked his comrades to continue moving forward. However, one soldier did not listen to him and took him back to the camp, while the rest of his team marched towards victory.?

Likewise, within the realm of investment, never underestimate the basic rules of investment. There are times we override our own rules and later repent. So remember that rules are usually planned in a calm fashion, so ensure that you never dilute your rules under the influence of any event.?

Learn to stay Calm and Say ‘it is Okay’

Sam Bahadur was falsely accused because Defense Minister V K Krishna Menon and Chief of Staff Lt. General Kaul wanted to frame him for a certain political motive. Sam’s family, well-wishers, and his battalion were worried for him but his response to their concerns was - ‘I am Okay, and everything will be okay.’ His spotless career could have been impacted by this false play, yet he chose to stay calm and said, ‘I am Okay’.

There is so much to learn from Sam Bahadur in terms of managing our investment-related anxiety. During the large bear phases, we often burden ourselves with stress. However, if we learn to stay calm like Sam in the face of adversity, we can train ourselves to be calm and stay put with our investments.?

Never Act Prematurely

During the 1971 Indo-Pak tensions, prior to the war, Prime Minister Mrs. Indira Gandhi could see no other way but to wage war. However, Sam Bahadur rightfully stated that they were not ready. If they start a war then they are bound to lose on account of various challenges like the unfavorable weather-condition, no-proper equipment and certain other aspects. His objective and duty were to WIN the war. He convinced the Prime Minister, planned his acts well, delayed the act, and prepped up for the war. He tactfully let Yahya Khan act first, so that he himself is not blamed for starting the war. But in every other aspect of war, he was prepared with a well-planned strategy to WIN the war. He got Pakistan to surrender, such was his planning and timing.?

Investment Management is no less than planning for war, as you are against an open market. It is a marketplace where many lose and only a few win. You got to plan and time your moves appropriately in order to make the best of your investments. Never act on an impulse on hearing the news, or your gut. Plan well, time well and own the outcome.

Plan your Exit when your Goal is Achieved

The best is yet to come. Sam Bahadur had a long, illustrious career; full of commitment to the nation, to the army and the soldiers. His life largely revolved around being a soldier, with no room for politics. As a result, when he reached his peak as a solider after winning the 1971 Bangladesh War, he decided to retire after fulfilling his duty as a hero. He was not only rewarded well, but he was made the first Field Marshal of India. Such was his exit from the active Army life where he would forever be a Field Marshal of India.

All journeys come to an end. However, the route you take defines your journey as well-planned or unplanned. If you plan it well and exit it at the right time, you can glorify your journey.?

Likewise, when any of your investments deliver great satisfactory returns, as per your expectations and market realities, you should exit and book your profits at the right time, ideally when you feel good about it. Never become greedy and assume it will keep going up. When you realize your goal is achieved, book your profits and move to the next investment journey.?

Your Investment Returns are a replica of your personality, your human behaviour. This was an attempt to learn from one of the greatest heroes of all time and share my learnings with one and all.

Image Credits - Defence Street