Investing and solving a Rubik’s cube may appear to be poles apart, but there are intriguing similarities. While many think of investing as a domain primarily suited for geniuses, there are several parallels between these two pursuits, and these can be applied to investing.
Firstly, building muscle memory is essential. Just as solving the cube with speed and efficiency requires practice, so does investment success. Investors who have spent decades investing develop muscle memory that makes them better investors. Their expertise stems from having gone through similar trends multiple times over decades – and they can leverage this experience to advise clients.
Similarly, a rule-based approach is crucial for both. In the Rubik’s cube realm, a structured approach—often termed ‘algos’—offer a streamlined path, enabling swift progression through the complexities of the cube. Similarly, crafting a strategic foundation is essential for investing success.
The record time to solve the cube has come down from one month (1974) to 23 seconds (1982) to today’s world record of 3.13 seconds, all due to innovation. Similarly, India’s sophisticated investors are witnessing transformative changes driven by innovation, deepening of talent pools and implementation of global best practices and supportive regulations.
Innovation in products and platforms such as REITs, private equity, AIFs, large value funds (LVFs), are expanding the HNI and UHNI investment landscape. Investors can choose from a wide range of portfolio managers, advisors or distributors that are the ‘right fit’ for them. This rapid innovation is unlocking phenomenal opportunities for sophisticated investors.
Enabling regulations such as the IBC Code, RIA regulations and more lowers entry barriers for talented managers, creates a level playing field and protects the rights of investors. This opens a large segment of the talent pool which looks at investing as a viable career – leading to greater innovation and better investment frameworks.
Although there is no hidden formula for mastering the game, adhering to a consistent and disciplined approach can be the key to attaining the ultimate prize in both conquering the cube and excelling in the art of investing.
