Five Investment Lessons from Scam 1992 Web Series

Scam 1992 unfolds the journey of the controversial stockbroker Harshad Mehta, who went on to become the culprit of India’s 1992 stock market scam. This scam was worth INR 5,000 crores and it rocked the entire nation. He changed the way how one looks at the stock market and how brokers trade. He was known as “The Big Bull” of Dalal street or “The Amitabh Bachchan” of the Indian stock market.

He once said he does not create waves but rides them. However, the Big Bull is not someone who just speaks. His actions are more powerful than his words. He became the biggest individual taxpayer in India in 1992, accounting for about INR 26 crores. 

Scam 1992 Web Series has very well captured the dreams and aspirations of a young man who had faced a class divide in the populous Ghatkopar of Mumbai. It was the experience of his early life that gave him the motivation to become rich. There was a stereotypical opinion in the minds of Indians that only Tatas and Birlas are rich at that time. However, Harshad Mehta is not someone who follows the crowd. He made his path and believed that anyone can become rich.

We will take a glance at some investment lessons from Scam 1992: 

1. Experience: Harshad Mehta believed that experience in investment is invaluable. It teaches you to be patient and boosts your confidence. Making investments becomes easy with experience. For example, a beginner may only invest in a share or debenture but the importance of maintaining a diversified portfolio only comes with experience. It helps in risk aversion.

2. Failure Is the First Step to Success: This sentence had a deep imprint on Harshad Mehta. Failure helps you to move ahead with more precision and accuracy and eliminates all the odds. Never be pessimistic if your investments are not performing well. If one’s investment did not do good for him/her, maybe the others will do wonders. So, never let a few setbacks be an obstacle to your investment capacity. 

3. Time: There is a famous quote that says the best time to invest is yesterday, not even today. So, it is always advisable to invest extra money at the earliest and build a well-stocked emergency fund. Apart from that, it is really important to understand the compounding power of money. Time value of money has a prominent role to play in making investments as:  

  • It can expand your risk tolerance.
  • It increases the ability to recover from any losses. 
  • It can maximize your returns. 
  • It gives you more control over your investment

4. Research: Nothing will pay off more than educating yourself when it comes to investing. Conduct compulsory analysis and research before making any decision about investment. It is an endless process of gaining and then applying the existing knowledge to generate huge returns. 

5. Taking Risks:The biggest risk is not taking the risk itself. The principle of investing is, “higher is the risk, higher is the return”. Sometimes to sustain in the market, one has to take higher risks. One has to come out of his/her comfort zone to realize significant gains.


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