Graham’s timeless wisdom has long guided investors, but amid rising global volatility and swift corrections in equity markets, even his ideas require context. The recent 3,300-point drop in the Sensex over just six trading sessions, triggered by escalating geopolitical tensions, rising U.S. bond yields, and the October derivatives expiry, is a stark reminder that passive investing alone may no longer suffice.
In today’s high-stakes financial climate, retail investors must evolve from ‘invest and forget’ to ‘invest and adapt.’
Why “Long-Term” Needs a Fresh Lens
There’s no discrediting Graham or the long-term investing approach—but the misinterpretation of ‘long-term’ has diluted its essence. Many have come to believe it means ignoring market signals altogether. In reality, today’s market conditions demand regular portfolio audits, strategic rebalancing, and timely capital deployment.
Your long-term goals should remain fixed. But your investment strategy must be agile, informed, and occasionally contrarian.
If You Invest in Direct Stocks: Key Questions and Cautions
Is it wise to buy the dip?
Buying during a market correction sounds tempting—until it’s a “falling knife.”
- Be cautious: The difference between a correction and a collapse is not always clear.
- Have dry powder (cash) ready, but don’t deploy it all at once.
- Seasoned investors have seen 2000, 2008, and COVID-era crashes—they know the cost of misreading the bottom.
Rule of thumb: If you have a full-time job or business, avoid timing the market. Let mutual funds or advisors handle the complexity.
Should you buy blue chips blindly?
No. Companies like HDFC, Bajaj Finance, TCS, or ITC are outstanding, but great companies don’t always mean great stocks—especially at the wrong price.
- Even large-caps face disruption.
- Ask yourself: Can these companies sustain 15–20% CAGR in the next decade?
- If you’re buying only what everyone else is, why not just invest in an index fund?
Evaluate lesser-known opportunities with better valuations. Wealth is created by buying good businesses at great prices, not just great businesses at any price.
Are you influenced by trends, tips, or influencers?
Many investors fall for news-driven or influencer-pushed stocks like Suzlon, Yes Bank, or Vodafone Idea—often trading under ₹50. Sure, they could surge—but ask:
- Have you studied the balance sheet, cash flows, and turnaround story?
- What percent of your portfolio do these occupy?
- Are there better risk-reward plays available?
Investing based on Telegram groups, WhatsApp forwards, or self-proclaimed YouTube gurus is like hiring someone to do pushups for you and expecting to get fit.
Recently, an influencer who claimed massive returns was fined ₹17 crore. He was losing money trading—but earned crores by selling courses. That should tell you something.
Don’t be fooled by recent past performance
Anyone can look like a genius in a bull run. Extraordinary returns in the past 2.5 years don’t guarantee sustainable outperformance. To quote a choreographer: “I taught Hrithik Roshan a step worth ₹2, and he returned one worth ₹20.”
So, before you idolise someone’s returns, ask whether it’s a one-time dance or repeatable performance.
For Mutual Fund Investors: Stay the Course, But Smartly
If you’re a mutual fund SIP investor, here’s what to keep in mind:
✅ Continue SIPs without interruption.
Volatility is your friend when investing systematically. Let rupee-cost averaging do its job.
✅ Have a strategy for deploying lump sums.
Use STPs (Systematic Transfer Plans) or staggered investments if you have extra capital. Don’t go all-in during volatile phases.
✅ Stick to your asset allocation.
Don’t panic and exit equity during corrections. Rebalance if necessary—but don’t abandon the plan.
✅ Mutual funds are your buffer.
They offer professional management, diversification, and far less emotional baggage than DIY investing.
✅ Shift from liquid to equity funds when valuations are attractive.
Market corrections offer a window to optimize long-term equity exposure via staggered deployment from liquid or short-duration debt funds.
Your Greatest Asset: You
The biggest multiplier of wealth isn’t a multibagger stock—it’s you.
- Upskill.
- Build a side hustle.
- Grow your business.
- Improve your career capital.
A 100% return on your income is far easier—and more repeatable—than chasing 100% on risky microcaps.
Final Thoughts: Active Wisdom Over Passive Panic
Corrections are part of the market cycle—not a signal to exit, but an invitation to re-evaluate. Whether you’re a stock picker or a mutual fund investor, the key is to balance action with discipline.
In investing, patience isn’t the absence of action—it’s knowing when to act and when to wait.
Key Takeaways
- Don’t assume every dip is a buying opportunity.
- Value > popularity. Fundamentals > fan-following.
- Avoid FOMO and news-based investing.
- SIPs work—keep them going.
- Your income and business can outperform most investments.