Learning the hard way, but early

Summary: What’s the price of wisdom? For many investors, it’s a few thousand rupees lost early in the markets—a small but memorable fee. In this insightful follow-up to Dhirendra Kumar’s note on “failing fast and cheap,” readers share real stories of mistakes that taught them more than any advice could. A timely reminder that small losses often shape lasting discipline.

When Dhirendra Kumar wrote that some lessons in investing are best learned through “affordable tuition fees,” readers instantly recognised themselves in the idea. The concept of failing early and cheaply struck a chord with those who had lived through painful market experiments and emerged wiser.

For Sudha Devi Janga, the lesson was deeply personal. “Being a homemaker with no personal earnings, I fell into the trap of quick returns and lost money. The damage was minimal, but the lesson was life-changing,” she wrote. Yet, she wondered if the idea of “failing cheap” still applied in an age when the average income and risk appetite have grown. “The earnings of a person directly influence the amount of risk he takes,” she said, pointing out that the younger, Gen Z crowd may be far more tolerant of losses—and therefore slower to learn.

Abhay Dixit shared a similar cautionary tale. Recalling a once-popular IPO of a small two-wheeler dealer, he said, “Investors failed to analyse how a local dealership with a restricted market could ever deliver large returns.” For him, the pattern is clear—young investors, buoyed by easy money and financial influencers, repeat the same mistakes every cycle. “Education in financial fundamentals should be part of technical education itself,” he said.

Others, like Virendra Gupta, appreciated the philosophy but questioned whether it truly works. “People with that mentality rarely listen. They nod, then go ahead anyway,” he observed, echoing Kumar’s own frustration that experience, not advice, remains the most effective teacher. CA Vikram Shah took it a step further: “Even after making losses, some people refuse to learn. It’s a gambling psychology.”

For Dr J M Viramgami, the column hit on a behavioural truth. “Human psychology forces us to do exactly what we’re told not to do,” he said, comparing reckless investing to chasing an adrenaline rush. He agreed with the “vaccination theory”—learning through small mistakes—but warned that many investors don’t stop at the first loss. “It’s a fatal attraction,” he wrote, urging investors to see that “investment is a boring, long journey” and that “patience pays.”

That sentiment resonated with Raviprakash, who admitted to having tried almost every fad—from crypto and F&O to mutual funds. “I lost Rs 30,000 in F&O and got stuck with Rs 46,000 in crypto,” he confessed, before settling into systematic investing. “Now I’m adjusting my portfolio and sticking to a few stable AMCs.” For him, the article validated that his losses were not wasted—they were his tuition fees.

Muthu Kannan described how separating “speculative” money from “family money” brought discipline to his investing. “I gave myself monthly pocket money to speculate—less than one per cent of my income—and the bad habits stopped almost immediately.”

Several readers connected Kumar’s advice to their own experiences with IPOs. Seshagiri Rao Chagnaty noted that the game has changed drastically since the era of fixed-price public issues. “Earlier, when the government fixed prices, we made money. Now promoters and bankers do, and investors are left guessing.” Arun Kumar Chari, meanwhile, offered a generational anecdote: “My daughter, who’s doing her CFA, told me that fundamentals don’t matter to many investors today. They just want to cash in on hype before someone else does.”

CA Anil Maheshwari agreed, calling new-age IPOs “immensely beneficial for promoters and early investors, but a losing proposition for the public.” And Vijay S, in his early thirties, summed up what many felt: “It’s hard to say no when so many options promise quick gains. Setting aside a small ‘R&D’ budget for mistakes is the only realistic way to learn.”

Prem Anantaraman found the approach unconventional but insightful. “Allowing someone to fail early is smart—provided they’re level-headed enough to learn. The gambler’s instinct can undo even the best intentions.”

Others, like Sumit Saundal, praised the practicality of the advice. “I see people in their 30s and 40s still losing money in derivatives and IPOs. Your recommendation to learn early and cheap deserves to reach a wider audience,” he wrote.

Perhaps the most succinct reflection came from Vasireddy Sreenivasa Murthy: “Hard lessons register for life—and those who learn them early become the best teachers in their circle.”

As the stories show, Dhirendra Kumar’s idea of “failing fast and cheap” isn’t just a catchy phrase—it’s a shared reality. For some, it’s a wound that healed into wisdom. For others, a warning they wish they’d heard sooner. But for all, it’s a reminder that in investing, the costliest mistake is never making a small one early enough.

Credits

Sudha Devi Janga, Abhay Dixit, Virendra Gupta, CA Vikram Shah, Dr J M Viramgami, Raviprakash, Muthu Kannan, Seshagiri Rao Chagnaty, Arun Kumar Chari, CA Anil Maheshwari, Vijay S, Prem Anantaraman, Sumit Saundal, Vasireddy Sreenivasa Murthy

Also read: The glitter and the glare

This article was originally published on November 03, 2025.