All my life, I have refrained from buying even a single share or selling any share in the stock market. I’ve consistently suggested to everyone I know—friends, family, and acquaintances—not to invest even a single penny in the stock market. The only possible exception I’ve ever mentioned is for good public sector undertaking (PSU) shares. Instead of chasing the volatile and uncertain stock market, I strongly advocate for a more cautious, long-term, and tangible approach to wealth-building.
For me, the key to financial security lies in activism, fixed deposits (FDs), government bonds, Public Provident Fund (PPF), investing in skills, improving one’s health, and making mindful, practical decisions regarding debt. Here’s my approach:
- Avoiding Home Loans – Never take on home loans. Always try to purchase a home with full payment if possible.
- Spending Wisely – Spend as little as possible and save diligently.
- Investing in Gold – Gold has historically been a safe and tangible asset.
- Investing in Rentable Properties – A rental property or office space can provide a steady cash flow, making it a solid investment.
- Building Your Own Business – Investing in your own business or a factory where you are an active participant, or where you trust the partner, can yield great returns.
In my personal journey, I have distanced myself from the stock market entirely. There was, however, a brief exception. In the 1990s, my brother had bought shares in my name, his name, and my parents’ names. But in 2004, I dematerialized and sold all of them without waiting for the market to reach a high or low point. After that, I never bought another share.
The Impact of Political and Economic Influence on the Stock Market
Since 2016, my income has been low, and my savings have been negative due to significant expenditures in political activism, particularly related to the EVM (Electronic Voting Machine) issue and other political causes. This period has further prevented me from investing in anything. However, my thoughts on the stock market remain unchanged, and I still firmly believe that small investors will lose in the long run.
The major problem with the stock market, in my opinion, is that it has massive holes—systemic flaws that make it an unreliable environment for individual investors. Below are two key factors that I believe create a disadvantage for small investors:
1. Influence of RBI and Finance Ministry Decisions
The Reserve Bank of India (RBI) and the Ministry of Finance (FinMin) are major players in the Indian economy, and their decisions often directly impact stock prices. Here’s the issue: these institutions possess the power to make economic decisions that alter market conditions. But, in my opinion, high-ranking officials at RBI, the Prime Minister’s Office (PMO), and the Finance Ministry often pass sensitive information ahead of public announcements to the so-called “elitemen”—a select group of individuals who have the resources to use this inside information to their advantage.
As a result, these insiders are able to profit from decisions and shifts in policy, while small investors are left at a disadvantage, facing the consequences of delayed or incomplete information.
2. Elite Knowledge of Global and Geopolitical Events
The second hole in the stock market involves elite individuals who, through their vast networks and influence, have advance information about global events, particularly military actions or geopolitical conflicts. While these individuals may not have the power to create or end wars, they often know when a war will start before the public does. They may even have the ability to influence political leaders to delay or pre-pone wars by a few days.
This advance knowledge gives these elite investors a significant edge over regular investors. As small investors have less information, weaker influence, and little ability to act in time, they are bound to lose in this system.
The Long-Term Consequences for Small Investors
As long as insiders benefit from these advantages, the share market will remain skewed in favor of the powerful few. This unequal playing field means that small investors—those who are not in the know—are more likely to lose than to gain. In my view, the stock market, as it currently operates, is not a genuinely fair environment for individual investors.
Moreover, the government and RBI often “rob” the country to feed both small and large investors. But these actions have limits. When those limits are reached, the stock market will eventually collapse, leaving behind many who trusted the system.
My Final Suggestion: A Safer Path Forward
For those who are still contemplating whether to invest in shares or the stock market, I strongly advise against it. I can only recommend what I personally practice and have always done—sell all shares, sell all bonds, and shift focus to safer, more reliable forms of financial growth.
Instead of gambling on the stock market, focus on:
- Activism for social change
- Building up your skills
- Improving your health
- Fostering financial security through tangible means like FDs, PPF, gold, and property investments
And yes, should the RBI and Finance Ministry stop working for insiders, the stock market might evolve into a fairer space for investment. But until then, I firmly believe that the share market is a losing game for small investors.
In conclusion, my experience and observations over the years have led me to one firm belief: for the majority of small investors, the stock market is not the place to build lasting wealth. Instead, I encourage everyone to explore alternative, more reliable methods of securing their financial future.
