- Veteran investor Shankar Sharma avoids stock tips to protect family peace and relationships
- Sharma's sister and her husband had wealth from property and steady income already
- He warns stock market volatility can cause anxiety and disrupt family bonds
Veteran investor Shankar Sharma has a simple reason for not recommending stocks to his sister. He does not want investment calls to come at the cost of family relationships and peace of mind.
Speaking in a podcast of CFA Sanjay Kathuria, Sharma recalled that his sister had asked why he had never suggested shares to her. He explained that she and her husband had already built wealth through property and earned a good income. There was little reason to expose them to the emotional demands of stock market investing.
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“If I give you five stocks, you'll download an app. Tomorrow, one will fall and you'll ask me what to do. You could lose your sleep and peace of mind,” Sharma said.
His concern goes beyond the possibility of a wrong stock call. Sharma believes professional investors develop the ability to withstand market volatility through years of experience. Ordinary investors may not have the same tolerance, making sharp price movements a source of anxiety and strained relationships.
Also Read | Why India's Biggest Stocks Stopped Working: Three Top Investors, One Verdict
He also described the stock market as a wealth-transfer mechanism rather than a route through which everyone automatically makes money. His remarks underline the gap between understanding market risk professionally and experiencing losses as a retail investor.
Sharma's broader investment philosophy also stresses diversification. He has argued that investors should build diversified portfolios and allow successful holdings to grow, rather than begin with concentrated bets.
He has also raised concerns about retail participation in futures and options, where traders often face substantial risks. For Sharma, the lesson is not that individuals should avoid markets altogether, but that investing requires discipline, risk tolerance and an understanding of potential losses.
Also Read | Small-Cap Stocks Reflect Real Growth, Large Caps Don't: Shankar Sharma
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