Investing is no longer about discovering hidden gems—it’s about managing risk and surviving, says Devina Mehra, Founder, Chairperson and MD of First Global. Speaking to CNBC-TV18, Mehra said, “Investing is a loser’s game. You have to play not to lose.”
She explained that just like aviation evolved from an adventure sport into a discipline of avoiding mistakes, investing too has changed. “Maybe 50 years ago, you could discover hidden gems. Not anymore. Now information is widely available. The game is not to lose.”
Her key advice for investors: cut your losses early. “Not to lose doesn’t mean you don’t book losses. In fact, you must book small losses early to avoid big capital hits. That’s the mantra.”
Mehra stressed that investors must stay humble. “When you invest in stocks, tell yourself, ‘I might be making a mistake.’ I guarantee a significant portion of your investments won’t go as planned.”
She warned that losses are mathematically unforgiving. “Lose 33% and you need a 50% gain to recover. Lose 50%, and you need to double your capital just to get back to where you started.”
Mehra argued that investors don’t need to take extreme risks to build wealth. “Even without extreme risk, being sensible matters. Saving ₹1 lakh a year for 30 years in a fixed deposit gives you ₹75 lakhs. A balanced multi-asset portfolio compounding at 9.5% gives you ₹1.7 crore. Go a little more aggressive, and you’re at ₹3 crore.”
She also urged people not to wait too long to start. “Get your broad allocation right and start as soon as possible. Start saving at 25 versus 30, and the difference in outcomes is massive.”
Taking a holistic view of one’s financial life is critical, she said. Investments aren’t just stocks and mutual funds—they also include real estate, gold, crypto, and liabilities like home or car loans. “First, understand where your money is currently invested. Then decide where you want to be and allocate your assets accordingly. If you do that sensibly, you’re 80% of the way there.”
Mehra also cautioned against falling for “magic formula” stock market courses or hot tips. “If someone can earn 1% a day, that means their money grows sevenfold in a year. Why would they teach you instead of compounding their own wealth?”
There are no shortcuts, she said. “People ask me, ‘You found HDFC Bank in 1996 or Amazon in 2001—what’s the next HDFC or Amazon I can buy and forget for 20 years?’ But no one knows that. Warren Buffett says that in 75 years, maybe 10 of his decisions made all the money. If he knew which 10, he would have just bet on those,” she said.
Watch accompanying video for entire conversation.