“Travelling shows you the map, diving shows you the treasure.”

Over 70% of our planet lies beneath the ocean’s surface, a realm most of us have only glimpsed through films. I ventured beyond the screen last year, earning my certification as an Advanced Open Water Diver, now qualified to dive up to 30 metres deep— the equivalent of a 12-storey building underwater. Beneath the waves, the sea is alive with an extraordinary tapestry of colours: neon blues, vivid yellows, and inky blacks paint fish, plants, and caves in a visual spectacle. Since my training in the Arabian Sea, I’ve been mesmerised—often finding myself dreaming of diving again. As Jacques Cousteau said,  “The sea, once it casts its spell, holds one in its net of wonder forever.”  Indeed, I’m hooked.
But being an equity investor for over two decades, I’ve come to realise how diving and investing mirror life itself. Millions of market participants make decisions influenced by their experiences, just as a diver navigates the underwater world with the tools and experiences they carry with them. Both require mastering a series of unique skill sets and surprisingly, there are striking similarities between the two.

Safety First: The Golden Rule of Diving and Investing
Why dive into the sea? For some, it’s to swim with turtles, explore shipwrecks, or retrieve lost treasures. Whether searching for big fish or tiny crabs, every diver shares one primary goal: to return safely. All other objectives are secondary.
In investing, participants enter with various aspirations. Some chase rapid wealth: others prefer to profit from the impatience of the former. But the one principle a prudent investor must hold paramount is to protect capital. All other goals, much like a diver’s secondary aims, come after this primary objective.

The Value of Preparation
Scuba diving demands thorough preparation. How deep will you go? How long will you stay submerged? What gas will you use? Just before jumping in, we check each other’s gear—ensuring everything is in working order. This process can separate a tranquil dive from a dangerous one.
In investing, the markets are unpredictable, and the only lifeline you have is solid research and analysis. Much like following a defined process before a dive, understanding the risks, and returns, and following a robust process is critical before leaping into an investment.

Diversification: A Lifeline in Both Realms
Diving relies on the ‘buddy system’—you pair up, keeping an eye on each other. Every diver’s tank has a spare regulator in case of an emergency, and we communicate about potential dangers or hidden wonders, ensuring the dive is enjoyable and safe.
In investment, diversification plays a similar role. When one asset class takes a hit, others can cushion the blow. Spreading your risk across different asset types, with varying returns and volatilities, helps ensure smooth sailing through market turbulence.

Patience Pays: A Long-Term Perspective
There’s no race in diving. In fact, during stressful moments like running low on oxygen, the advice is to slow down. Quick, panicked movements increase your heart rate and burn through precious oxygen faster. A skilled diver moves smoothly and deliberately.
Investing, too, rewards those with patience. Many new investors are drawn to the allure of quick gains, chasing after ‘multi-baggers’. However, taking on excessive risk often leads to losses. Success comes to those who adopt a long-term view, not those always chasing the next big thing.

Crisis Management: Staying Calm When the Tide Turns
Underwater, emergencies happen—a regulator might be knocked from your mouth, or your tank might get snagged on seaweed. In these moments, the mantra is:  Dive first, situation second, communicate third.  Ensure you’re floating properly, adjust your gear, and breathe steadily. Only then do you address the issue and communicate with your dive buddy if necessary.
In investing, when market euphoria or panic sets in, many investors do the opposite. They rush to social media, react impulsively, and fail to check their initial investment logic. A prudent investor first checks the fundamentals—are the assets in their portfolio sound? Only then do they assess the situation calmly, deciding whether any action is needed. Communicating with others, while useful, should come last.
A classic example occurred during the recent Lok Sabha elections, where the market jumped 3% on hopes of a clear majority, only to fall 6% the next day when that didn’t materialise. Within a week, it corrected itself. For a long-term investor, the wisest move during such times is often to filter through the noise around, sit tight and weather the storm.

The Big Picture: Staying the Course in Choppy Waters
Just as in diving, the key to successful investing lies not in chasing thrills or reacting to every ripple but in staying calm, prepared, and focused on the bigger picture. Whether navigating the vibrant depths of the ocean or the volatile waves of the market, it’s the balance of risk, patience, and skill that leads to meaningful exploration and lasting rewards. So, next time you face choppy waters—be it financial or underwater—remember to trust your preparation, protect your capital, and keep your eye on the horizon.

About the author
Aniruddha Meher, M.Phil. (Stat), CFA
Associate Director, Sr. Portfolio Manager at Multi-Act
With two decades of investment experience, Aniruddha has been at the helm of the Sankhya India Portfolio since its inception. A statistician by training, with an M.Phil. in Statistics from Pune University and a CFA, Aniruddha is a founding member of Multi-Act’s Quant team, where he leads a team of five expert statisticians in navigating complex market data and trends. Aniruddha enjoys adventures such as motorcycling and scuba diving where he believes the risks can be controlled.

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