Emotional Investment.

There is a field in finance called emotional investing which means using feelings rather than logic in making investment decisions. I will briefly talk about it later, but I would like to focus more on the psychological emotional investment which is – “Emotional ‘investment’ in a subject is the degree to which emotions are evoked when the subject is encountered. Things in which we can invest include: Relationships with others. Ideas and ideologies.”

Viktor Frankl in his best seller Man’s Search For meaning talks about two instances of emotional investment which end up in tragedy. The first is of a man who gets a dream where he hears that he will be free from the concentration camp by the end of the month and perks up. When there is no sign of freedom at the end of the month, he dies. Similarly, other inmates imagine that Christmas will bring about their freedom and before the new year they will be free. They too die of disappointment.

On the other hand, Frankl observing such behaviour keeps his hopes alive with the single thought that he will one day write a book about his experiences and that one thought keeps him going till his release.

What better examples for emotional investment in ideas that can lead either to negative or positive results?

In the Indian system of Personality Analysis, there are three traits in all human beings called, Satvaguna, Rajoguna and tamoguna. All of us have all three in us except that the degree to which they predominate differs from individual to individual. I flatter myself that I am the Satvik type.

Some years ago, I had an opportunity to undergo the Myers Briggs personality analysis and I was given this analysis about my personality type:

Extraverted Sensing Thinking Judging

• Realistic, outgoing, systematic, dependable
• Dignified, strong-willed, and principled
• Extremely loyal to family, community, and country
• Great strategist and outstanding “game” player
• Respects tradition and order
• Highly ethical, hardworking, dedicated, and honest
• Lives in the observable “real world” and focuses on what is practical
• Extremely organized with difficulty dealing with uncertainties
• Responsible and would rather plan before acting.

In the Indian system of personality analysis, I flatter myself that I fall into the Satvic type.

My Yogic analysis and the MB analysis gel well and I can say that I am a well adjusted personality with just enough emotional investment in what matters and not greatly involved in the negative aspects of such investments.

Now, coming to the financial emotional investment aspect of this topic, I had made some foolish investments based on emotion rather than logic and lost a packet in the bargain. For instance, in a horse race, I bet on a horse named after my late wife and that horse came last! Similarly I invested in an IPO of a company named after a favourite deity and that company went into liquidation in just three years. After that experience, I have withdrawn from all kinds of financial speculative activities and now live a comfortable if somewhat placid life.

This is my take on this week’s Friday 5 On 1 blog post topic. The other four bloggers who write on the same topic every Friday are Sanjana, PadmumShackman and Conrad.  This week’s topic was suggested by Padmum. Please do go over to their respective blogs to see what they have to say on the topic. Thank you.

Daydreams.

daydream

This topic was suggested by me for the weekly Friday LBC posts for this year. Quite what I had in my mind when I suggested it escapes me now and I am floundering to write something about it.

“Daydreaming is a short-term detachment from one’s immediate surroundings, during which a person’s contact with reality is blurred and partially substituted by a visionary fantasy, especially one of happy, pleasant thoughts, hopes or ambitions, imagined as coming to pass, and experienced while awake.”
~ Wikipedia.

Logically, the definition precludes dreaming as we understand it, ie, a thought process that occurs during our sleep. So, the detachment is while when one is wide awake!

I am not a great daydreamer now as my time is quite occupied during the day times. I am usually reading, or solving crossword puzzles, or being quite occupied with something or the other. I suppose that in my younger days, I was a daydreamer and in retrospect can say that some of the daydreams have come true while most have stayed as dreams only. I suppose that it would be the same for most of us.

I am now at an age where it is futile to daydream whereas I can live in my past to my heart’s content. And that observation brings me to an all time favourite piece of writing from a favourite author, with which I will close this post.

“The pessimist resembles a man who observes with fear and sadness that his wall calendar, from which he daily tears a sheet, grows thinner with each passing day. On the other hand, the person who attacks the problems of life actively is like a man who removes each successive leaf from his calendar and files it neatly and carefully away with its predecessors, after first having jotted down a few diary notes on the back. He can reflect with pride and joy on all the richness set down in these notes, on all the life he has already lived to the fullest. What will it matter to him if he notices that he is growing old? Has he any reason to envy the young people whom he sees, or wax nostalgic over his own lost youth? What reasons has he to envy a young person? For the possibilities that a young person has, the future which is in store for him?

No, thank you,’ he will think. ‘Instead of possibilities, I have realities in my past, not only the reality of work done and of love loved, but of sufferings bravely suffered. These sufferings are even the things of which I am most proud, although these are things which cannot inspire envy.’ ”

From “Logotherapy in a Nutshell”, an essay”
― Viktor E. Frankl, Man’s Search for Meaning