“It is not what we do that is so unique, but how we do it.”
“Peaceful Investing is all about understanding the uniqueness of each individual. To understand the unique needs of an individual, we at Pahal Financial follow the millennia old 5 step Vedic process. It is this process, that helps us find the right products for our valued investors.”
Vishaya (विषय): Subject (problem) at hand
If I had an hour to solve the problem, I would spend 55 minutes defining the problem and 5 minutes resolving it. - Albert Einstein
Defining a problem at hand is the first thing we do. While the concept is intuitive, we feel the benefits of a clearly defined problem or subject are underappreciated. A whole lot of individuals are investing just for the sake of it. We have seen on numerous occasions that individuals do not have a clear definition of what they want from their investments. Only when the right questions are asked, we can reach to the right answers. It is not the other way around.
Vismaya (विस्मय): Doubt
Sever the ignorant doubt in your heart with the sword of self-knowledge. Observe your discipline. Arise. – Shrimad Bhagavad Gita
The second step after clearly defining the problem is to address the doubts. Doubt is the single most factor behind procrastination. Doubt whether the problem would be solved in terms of time and quantum. Doubts about return of capital and return on capital. Doubt whether one can trust someone else with ones hard earned money. At Pahal Financial, we believe it is pertinent to address these general doubts through our experience and knowledge before delving further into the process.
Purvapaksha (पूर्वपक्ष): Prior views (beliefs)
To be useful, in any field, your beliefs should be constrained by the logic of probability. – Daniel Kahneman
The third step, addressing prior views or beliefs is closely related to the second step of the process i.e., addressing doubt. Our doubts arise from the lack of knowledge and our beliefs are formed either due to past experiences or by following someone whom we trust. We spend considerable time to understand the prior views of individuals about investing in general and, equities in particular. If we feel that the beliefs an individual holds towards a product are misplaced, we note them down and address them one by one.
Siddhanta (सिद्धान्त): Established first principles
First principles thinking means boiling things down to “the most fundamental truths” and then reasoning up from there. – Elon Musk
Investing is the art of taking decisions under the conditions of uncertainty. It is difficult to predict the future and we all know that. This is where our fourth step becomes vital. We can clear the doubts and false beliefs only with the help of knowledge. Knowledge that is deep rooted in the theory and practice of fundamental principles of investing. Fundamental truths or first principles are axioms that have been proven effective for a long period of time and during the events of extreme uncertainties. The approach of sticking to basics on a consistent basis generates wealth in the long run.
Sangati (सन्गति): Coherence
The goal is nothing but the coherence of the system not only in respect of all details, but also in respect of all times, all peoples, and all cultures. – Max Planck
This is where the rubber meets the road. Coherence is coming together of all the steps in a systematic and logical way. The final step where theory and ideas are put forth to practical use. The effectiveness of the process is judged by its ability to put things into an actionable way toward achieving desired results. In this final step we create an Investment Policy Statement (IPS) clearly stating which products are selected for what purpose. The merits and effectiveness of all the products are explained and a product matrix is constructed for investors keeping in mind their unique needs.