Shankar Sharma’s Unconventional Investment Advice: Why He Tells Family to Avoid the Stock Market

Ace investor Shankar Sharma has ignited discussions on social media by advising individuals to avoid stock market investments. His comments, shared on X (formerly Twitter), have gained traction, particularly amid ongoing market volatility. Sharma’s investment philosophy contrasts with the conventional wisdom of stock market participation, yet his advice has led to financial security for his family over the past three decades.

A Conservative Approach to Wealth

For the last 35 years, Sharma has consistently advised his sister and brother-in-law, who live in a small town, to stay away from stocks and mutual funds. Instead, he recommended a simple and conservative portfolio:

• 40% in Fixed Deposits (FDs) – Ensuring liquidity and steady returns.
• 30% in Gold – A traditional hedge against inflation.
• 30% in Raw Land (25 km from town) – Capturing long-term appreciation.

According to Sharma, this approach has helped them remain financially stable and stress-free without the complexities of stock market investing. “Today, they are stress-free, liquid, and wealthy beyond dreams,” he wrote in his post.

Investment Portfolio Breakdown

Shankar Sharma: Net Worth and Achievements

Shankar Sharma is a renowned investor, market expert, and co-founder of First Global, an investment firm known for its strategic global insights. Over the years, he has built a reputation as a sharp market analyst and commentator.

Net Worth

Shankar Sharma’s net worth is estimated to be in the range of ₹500-700 crore (approx.), though exact figures fluctuate based on his investments and market conditions. His success stems from decades of astute investing and identifying market trends ahead of time.

Major Achievements

• Co-Founder of First Global – Built a well-regarded investment firm offering strategic financial advice worldwide.
• Market Analyst & Commentator – Known for making accurate market predictions and sharing valuable insights on investments.
• Advocate of Alternative Investment Strategies – Promotes conservative investment strategies outside the stock market.
• Recognized Global Investor – Featured in multiple financial publications and sought after for his views on emerging markets.
• Influential Social Media Presence – Engages with investors and traders, challenging conventional wisdom on investing.

Avoiding Stock Market Complexities

Sharma believes that stock market investments require deep financial knowledge and constant monitoring. His sister and brother-in-law, who never followed economic trends or global financial policies, were able to build substantial wealth by sticking to his simple strategy. “They don’t know what RBI policies are, who the US Fed Chairman is, or what trade wars mean,” he emphasized. Yet, they have managed to secure their future without stress or sleepless nights.

“Luck Plays a Huge Role”

When an X user suggested that trading could also generate significant wealth, Sharma acknowledged that luck plays a major role in stock market success. He revealed that in his 35-year experience, fewer than 50 to 70 individuals had made substantial gains in the market. “We were lucky, that’s all,” he admitted, emphasizing that long-term success in trading is extremely challenging.

Challenges of Long-Term Stock Trading

Sharma also highlighted the difficulties of sustaining long-term stock market gains. “Let nobody tell you otherwise. It’s very, very difficult to bat for decades on different pitches and survive. And it requires a big bull market tailwind too,” he noted. His perspective underscores the risks involved in stock investing, which often require expertise, discipline, and favorable market conditions.

Mixed Reactions from Investors

Sharma’s advice has sparked debate among investors. While some support his conservative approach, arguing that financial security should come first, others believe that calculated risks in the stock market can yield significant returns. Many seasoned investors advocate for a balanced approach that includes both traditional assets like gold and land, along with equities for long-term wealth creation.

A Lesson in Simplicity and Stability

In an era where investors are bombarded with complex financial strategies, Sharma’s story serves as a reminder that simplicity can be powerful. His approach is based on three key principles:

1. Simplicity – Investing in assets that are easy to understand and manage.
2. Safety – Prioritizing low-risk, time-tested investments.
3. Long-Term Vision – Allowing compounding and asset appreciation to work over time.

Conclusion

While Sharma’s strategy may not suit everyone, it highlights the importance of aligning investments with one’s risk appetite, knowledge, and financial goals. Whether one chooses the stock market or more conservative investments, a disciplined approach can lead to financial stability and long-term wealth.

As the debate continues, Sharma’s unconventional yet effective investment philosophy remains a compelling case for those seeking a stress-free financial future.