Investing and cooking may seem poles apart at first glance. But they do have tons of similarities! In many ways, investing is like cooking, where you must add the right ingredients to your portfolio to serve the best platter (well, here, let’s say, returns).
And when it comes to cooking, it’s hard not to mention Masterchef India. It is a show wherein amateur chefs from all around India compete against one another to earn the title of ‘MasterChef’ by showcasing their culinary skills.
Even though this may seem like an odd place to get investment advice, there are numerous similarities between investing and cooking.
Investors must carefully pick their investments, prepare their investing approach, and make adjustments as necessary, much as a chef must organize their ingredients, plan their cooking procedure, and modify as necessary.
Read on as we examine how investing is like cooking and the best 10 investment lessons we can learn from MasterChef India in this blog.
Investors must choose their investments carefully and adhere to a well-defined investing plan, as chefs meticulously select their ingredients and follow a recipe.
Cooking and investing take persistence, practice, and the capacity to adjust to changing circumstances. We may learn how to approach investing with greater assurance and make better financial judgments by learning from the show and the MasterChef India judges.
The significance of assessing our investment and risk appetite, just as we measure materials while cooking according to our hunger, is one of the most critical investment lessons to learn from the show. Like determining how hungry we are and how much food to prepare, determining how much and where to invest requires determining our financial objectives and risk tolerance.
If we cook too much, it can go to waste, and if we cook too little, we might not have enough to satisfy our appetite. In a similar vein, if we put too much money into a high-risk venture, we risk losing more than we can afford, and if we put too little money in, we run the risk of missing out on possible profits.
As a result, it is crucial to examine our financial objectives, time horizon, and risk tolerance to decide our investment and risk appetite.
The value of balancing our portfolio, just as a chef balances the flavours and components in a meal to achieve a harmonic and pleasant flavour profile, is another critical financial lesson we can take from the globally renowned show.
An overly sweet, sour, or spicy food can be unappetizing in cooking, and the same logic holds for investment. Our portfolio may become imbalanced, and our risk of losses may rise if it is overly concentrated in a single asset class or industry.
As a result, it is critical to do diversification of your assets across various asset classes, industries, and regions to maintain the balance of our portfolio.
The necessity of adding required components is another valuable lesson we can take away, as investors should only add securities that perform well for them.
Putting too many ingredients in a dish can overwhelm it and reduce appeal. Similarly, having too many stocks in our portfolio can affect its returns and make managing it more challenging.
Hence, it is crucial to concentrate on just including the companies consistent with our investing plan, financial objectives, and risk tolerance. Investors should only choose companies that complement their portfolio and increase their profits, much as a chef chooses only those elements that enhance the flavours of a dish.
The need to have patience with our investments, just as we must have patience when cooking, is one of the most important investing lessons we can learn from the cookery show.
Chef Vikas Khanna often says rushing or being impatient during the cooking procedure might result in unappealing, undercooked or overdone dishes. Similarly, when it comes to investing, being hasty and making snap judgments based on momentary market swings can result in losses and have a detrimental influence on our long-term financial objectives.
As a result, even during market volatility, it is crucial to be patient with our investments and adhere to our investment strategy. Investors must give their assets enough time to mature and generate profits, just as a chef must provide the ingredients time to simmer and the flavours to merge.
The value of ongoing learning and experimentation, just as chefs continuously test new recipes and methods, is another critical investing lesson we can take.
To advance their craft and develop fresh, cutting-edge meals, chefs always search for new ingredients, recipes, and cooking methods. It is equally crucial to continue learning and experimenting with new investment methods and procedures to enhance our returns and meet our financial objectives.
This may entail evaluating our portfolio regularly, evaluating the success of our investments, and pinpointing areas that need work. Investors should also be willing to admit their errors and learn from them so they will not repeat them in the future.
The value of research is another financial lesson we can learn from the show, much as cooks do before they prepare a new dish. Before making a new dish, chefs frequently research fresh ingredients, methods, and recipes. Similarly, doing extensive research before buying stock or investing in a new business is crucial.
This may entail looking at the company's financial documents, evaluating its competitive environment, and investigating market trends and advancements. Investors should also consider additional elements, including the management team, company model, and regulatory environment.
‘Contestants, keep your counter clean!’ - is often heard to be said by Chef Ranveer Brar.
Maintaining a clean kitchen station is one of the investment lessons we can take away from the show, just as we must avoid messing up our assets.
When cooking, a disorganized kitchen counter can cause confusion, mistakes, and subpar food. Thus, the MasterChef India contestants are urged to keep their counters clean. Similarly, organizing and investing require organizations to avoid making poor choices that result in poor returns.
Therefore, it is critical to maintain order in our finances and steer clear of making a mess of our investing choices. This may include maintaining a tidy investing portfolio, keeping thorough records of our holdings, and steering clear of rash or irrational investment choices.
Being open to new culinary techniques and investment opportunities is another investment lesson we can take away.
To create novel and intriguing dishes, chefs frequently experiment with different methods, ingredients, and cuisines. In the same way, it's critical to be open to new investment avenues and approaches to diversify our portfolios and maybe increase profits.
Investors should be updated about new investment products, developing market trends, and creative tactics to find prospective investment possibilities that match their investment goals and risk tolerance.
Learning how to use different culinary utensils, much as we must learn how to use technical analysis tools in trading, is another significant investment lesson to take home.
Chefs create their meals using various instruments and appliances, including knives, pans, ovens, and blenders. Similarly, technical analysis methods in investing may aid investors in understanding market patterns, spotting prospective investment opportunities, and coming to well-informed conclusions.
Investors can utilize various technical analysis methods like Moving Averages, Relative Strength Index (RSI), Bollinger Bands, and Fibonacci Retracements.
‘Try again; your dish may need several good attempts to make its way to the plate', says Chef Garima.
It is another financial lesson we can take away from the show to try again if you fail the first time. This is similar to how we shouldn't give up if we experience losses in the market and how we should be willing to take chances.
It is typical for chefs to experiment with new recipes and culinary methods and to fail or make blunders on the first try. Nevertheless, they persist and keep trying until they succeed by learning from their errors. Similarly, it is typical to lose money when investing, but it's crucial to learn from these mistakes and keep investing with a long-term view.
Investors need to be aware that there are dangers associated with investing, and not all choices will turn a profit. However, investors may be able to achieve their financial objectives by taking calculated risks, learning from their errors, and examining market trends.
Although cooking and investing may appear to be two unrelated fields, there are essential investment lessons to be gained from the MasterChef India judges, the MasterChef India winners, and the contestants.
By incorporating the lessons mentioned above into our investment approach, we may be able to meet our financial objectives and create lasting wealth. An investor must be persistent, patient, and disciplined in their approach to investing, much as a cook takes time to make a recipe.
We hope these tips will improve your investing skills and lead you to financial success.