Equity & Theory of Karma

It has been observed that there is a direct and automatic application of theory of karma in equity investment and management as in other walks of life.

If the equity manager/advisor has wrong and malicious intention behind his action/advise, he is never successful on long-term basis. He has to be honest, be enlightened, be capable and be commendable of all the variable factors he deals with including client behavior.

Similarly, client has to be honest and loyal to his equity manager/advisor in terms of his true portfolio size and money deployed on his advisors' recommendation. If there is an intentional understatement of quantity purchased/sold, the rate of sale and/or overstatement of the rate of purchase, the performance of his portfolio will speak for itself.

In equity investment and management, each one has to be pure and divine as "AUM" to generate and breed best results on time, money and resource deployed. Human error is pardoned but certainly not the foul ulterior motive from either side.

Neither manager/advisor should boast of his good pick and carry airy posture on his big gains nor the client should boast of his successful investment among his circle. Each has to be humble and considerate for the outsiders. Modesty very much applies equally in loss situation also. It is this humbleness that is responsible for consistent performance at stock market.

The theory of karma applies more to the corporate who is the issuer of equity. His corporate governance and business acumen is vital ingredient of his equity performance on the bourses.