Veteran investor explains why most investors fail in markets

India Today

30-05-2025

Most Indian investors are chasing money using broken tools and false ideas, says well-known investor Shankar Sharma. In a podcast called Exploring Minds, he shared some hard truths about why many people fail to build wealth, even when the stock market is booming.THE BIG PROBLEM? LACK OF SELF-DISCIPLINEAccording to Sharma, what keeps investors from growing rich is not their skills, but their inability to be honest with themselves.advertisementHe said many fail to ask tough questions and instead rely on myths. He was critical of the belief that great investors can see into the future, dismissing it as an unrealistic myth.NO ONE TALKS ABOUT WHEN TO SELL
One of the biggest gaps in investment education, Sharma said, is the lack of conversation around when to sell. Everyone focusses on buying and holding, but no one teaches how to exit at the right time.'I was lucky to make money and was luckier to actually sell. So, self-discipline is extremely important no matter what,' he said.HIS SIMPLE RULE FOR SELLINGSharma advises that if an investment performs three times better than the market average within three to five years, one should consider selling.He described this strategy as data-driven, not a matter of intuition.DON'T FALL FOR THE LONG-TERM INVESTING HYPEadvertisementAlthough long-term investing is widely praised, Sharma believes it isn't always realistic. He pointed out that Warren Buffett earned most of his wealth after 60, which may not be useful for someone trying to cover expenses in their 30s.According to him, long-term investing only works when combined with strong self-discipline—otherwise, it remains just an idea.MESSAGE FOR YOUNG INVESTORSSharma cautioned young market entrants that without a global perspective, true market understanding may take decades.He attributed a major shift in his own career to the moment he stopped thinking locally and started approaching the market with a global mindset.