{"id":224,"date":"2025-11-06T05:15:44","date_gmt":"2025-11-06T05:15:44","guid":{"rendered":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/?p=224"},"modified":"2026-08-19T07:00:05","modified_gmt":"2026-08-19T07:00:05","slug":"making-money-requires-conviction-not-borrowing-lessons-from-vikas-khemani","status":"publish","type":"post","link":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/podcast\/making-money-requires-conviction-not-borrowing-lessons-from-vikas-khemani\/","title":{"rendered":"Making Money Requires Conviction, Not Borrowing: Lessons from Vikas Khemani"},"content":{"rendered":"\n

Vikas Khemani, Founder of Carnelian Asset Management & Advisors, shares why sustainable wealth is built through conviction, discipline, and continuous learning rather than borrowed ideas or short-term speculation on Simple Hai!<\/em>, the financial podcast hosted by Vivek Law.<\/strong><\/p>\n\n\n\n

At a time when investors are increasingly chasing quick profits and market trends, Khemani offers a different perspective. Drawing from decades of experience in India’s capital markets, he argues that lasting wealth is built on conviction rather than impulse. Throughout the conversation, he shares his views on investing, entrepreneurship, market volatility, and the importance of maintaining balance in both professional and personal life.<\/p>\n\n\n\n

Khemani begins by distinguishing between two concepts that are often confused in investing: conviction and bias. According to him, conviction is faith built on knowledge, while bias is simply a belief without sufficient understanding.<\/p>\n\n\n\n

He explains that developing conviction requires extensive research, continuous learning, and a willingness to accept that being wrong is sometimes unavoidable. The real challenge, he says, lies in knowing when to reassess an investment if the fundamentals change and when to remain patient if they don’t.<\/p>\n\n\n\n

This philosophy extends beyond investing and applies equally to careers. Frequently changing jobs in pursuit of immediate rewards can interrupt the power of compounding, while long-term commitment often produces more meaningful results.<\/p>\n\n\n\n

Why Is Borrowed Conviction One of an Investor’s Biggest Mistakes?<\/h2>\n\n\n\n

One of Khemani’s most valuable investing lessons came from personal experience.<\/p>\n\n\n\n

As a young investor managing his father’s money, he suffered significant losses because he made decisions based on incomplete knowledge. That experience led him to develop a principle that continues to guide his investment philosophy: “You can never make money from borrowed conviction.”<\/strong><\/p>\n\n\n\n

According to Khemani, borrowed conviction appears in several forms.<\/p>\n\n\n\n

The first is depending on investment tips instead of conducting independent research. The second is investing without sufficient knowledge or expertise. He believes that individuals who cannot dedicate enough time to analysing companies should consider mutual funds, which have consistently demonstrated their ability to create wealth over long periods.<\/p>\n\n\n\n

The third mistake is treating investing as a casual activity. Khemani argues that direct stock investing should be approached like a profession because it requires discipline, continuous study, and long-term commitment.<\/p>\n\n\n\n

Can Market Volatility Actually Create Opportunities?<\/h2>\n\n\n\n

Unlike many investors who fear market fluctuations, Khemani views volatility as a test of conviction rather than a threat.<\/p>\n\n\n\n

He cited the example of Aditya Birla Capital, whose stock price declined sharply because of external concerns related to tariff-related issues that had little connection to the company’s underlying business.<\/p>\n\n\n\n

For investors with strong conviction and a clear understanding of the company’s fundamentals, such declines can present attractive buying opportunities.<\/p>\n\n\n\n

The stock eventually recovered within a few months, reinforcing his belief that short-term market reactions should not dictate investment decisions.<\/p>\n\n\n\n

According to Khemani, investors should avoid becoming overly focused on stock prices or market indices.<\/p>\n\n\n\n

“Actual investing is about investing in a company and a business,” he says.<\/p>\n\n\n\n

He points out that several businesses significantly outperformed broader market indices between 2013 and 2016, particularly in the IT and consumer sectors. Identifying strong businesses, capable management teams, and visionary entrepreneurs remains the most important aspect of investing.<\/p>\n\n\n\n

Why Does Khemani Believe India Is Entering a Once-in-a-Generation Growth Phase?<\/h2>\n\n\n\n

Looking ahead, Khemani remains extremely optimistic about India’s future.<\/p>\n\n\n\n

He compares the country’s current economic transformation to the growth experienced by the United States during the 1980s, describing it as a once-in-a-generation opportunity.<\/p>\n\n\n\n

According to him, three major factors are driving this transformation: entrepreneurship, productivity, and a free-market economy.<\/p>\n\n\n\n

India’s diversified economy, supported by manufacturing, agriculture, and services, provides a strong foundation for growth. Government initiatives are expected to increase manufacturing’s contribution to GDP from 15-16% to 20-25%.<\/p>\n\n\n\n

At the same time, rising incomes are increasing demand across industries such as aviation, housing, and consumer electronics.<\/p>\n\n\n\n

Large-scale investments in roads, ports, and airports are also improving connectivity and extending economic opportunities to smaller cities and towns.<\/p>\n\n\n\n

How Are Demographics and Entrepreneurship Reshaping India’s Future?<\/h2>\n\n\n\n

Khemani believes India’s demographic advantage will play a crucial role in the country’s development.<\/p>\n\n\n\n

With nearly two-thirds of the population falling within the working-age group, India possesses a significant labour and consumption advantage.<\/p>\n\n\n\n

He also observes that entrepreneurial ambition is no longer limited to metropolitan cities. Instead, the desire to build businesses is spreading rapidly across Tier-II and Tier-III cities.<\/p>\n\n\n\n

He expects financial services to continue expanding as investors increasingly explore portfolio management services, alternative investment funds, and private equity.<\/p>\n\n\n\n

However, he repeatedly emphasises one principle: always focus on the quality of management.<\/p>\n\n\n\n

Reflecting on his own entrepreneurial journey, Khemani explains that he left the comfort and influence of the corporate world because he recognised the enormous opportunity that India presented. Armed with knowledge, energy, and sufficient capital, he chose a path that was more challenging but potentially far more rewarding.<\/p>\n\n\n\n

He concludes with a lesson that extends far beyond investing: balance is not a destination but an ongoing process. Similarly, building wealth depends on developing healthy financial habits and consistently prioritising what truly matters.<\/p>\n\n\n\n

According to Khemani, the biggest obstacle is often the excuse that there isn’t enough time. Time, he argues, is always available for what people genuinely prioritise. Just like investments, good habits also benefit from the power of compounding.<\/p>\n","protected":false},"excerpt":{"rendered":"

Vikas Khemani, Founder of Carnelian Asset Management & Advisors, shares why sustainable wealth is built through conviction, discipline, and continuous learning rather than borrowed ideas or short-term speculation on Simple Hai!, the financial podcast hosted by Vivek Law. At a time when investors are increasingly chasing quick profits and market trends, Khemani offers a different […]<\/p>\n","protected":false},"author":6,"featured_media":225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcast"],"_links":{"self":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/comments?post=224"}],"version-history":[{"count":1,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/224\/revisions"}],"predecessor-version":[{"id":226,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/224\/revisions\/226"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/media\/225"}],"wp:attachment":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/media?parent=224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/categories?post=224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/tags?post=224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}