The Last Real Edge
Why calmness may matter more than any strategy in today’s noisy markets
As I mentioned in my earlier note, Sunday’s India vs Pakistan match had all the noise you could imagine. The roar of the crowd on TV, the tension on the field, and toddlers running wild around the living room made it nearly impossible to focus.
Yet what struck me was not the noise itself, but how the players carried on with composure through it. It reminded me of the markets. They are always noisy too, filled with endless headlines and wild swings, but calmness is what often separates conviction from capitulation.
Calmness never shows up on a balance sheet or a stock chart, yet it quietly shapes outcomes. In today’s markets, it may be the last real edge an investor has.
When Calmness Paid Off
I saw this lesson clearly with Rocket Lab. Since its IPO the stock had mostly been trading at lower levels, with many investors losing patience and moving on. Sentiment was weak and the story often overlooked.
I kept averaging in when it felt uncomfortable to do so, with my cost basis around $4.5. It was not easy to hold a company that the market seemed to ignore, but I stayed patient. Eventually I exited near $25, turning what looked like a stagnant bet into one of my best trades.
That outcome did not come from timing or momentum. It came from conviction and calmness, from sitting through doubt until the value was recognized.
When Calmness Slipped Away
But calmness did not always hold.
Earlier this year, just after the elections, the headlines were overwhelming. Debates over tariff policies, shifting U.S. stances, and program inefficiencies dominated the news. Rocket Lab had already delivered me outsized returns in a short period, and instead of trimming or scaling down gradually, I exited the position entirely.
In that moment I lost sight of why I had invested in Rocket Lab. It was undervalued, the only major publicly listed space company after SpaceX, which was valued north of $300 billion. Space is the next frontier, yet I let short term uncertainty outweigh the long term vision.
At first it looked like the right decision. The stock fell back to $16 and I felt relieved. But by April, despite the noise, Rocket Lab rebounded into the $50s.
I re-entered around $27, and today it makes up about 3.5 to 4 percent of my portfolio. I still see it as a long term story. But that episode reminded me what fear can cost. Had I stayed calm, the position would have been much larger today.
Volatility and Staying the Course
Calmness is not only about individual stocks. It is about how you face the market as a whole. Over the years I have seen my portfolio swing up and down more times than I can count. Early on those moves rattled me, but slowly I learned to treat volatility as part of the journey.
It reminded me of a saying I’ve come across many times: time in the market is more important than timing the market. A simple phrase, but one that becomes clearer each year I stay invested.
The clearest example was late 2021 through late 2022. After the post-COVID boom, with rates near zero and liquidity flooding the system, bubbles were inevitable. Inflation surged, the Fed responded with the fastest rate hikes in decades, and markets went into a year-long decline.
Watching your portfolio bleed red every day for months is wrenching. Friends sold, headlines screamed slowdown, and every instinct said to get out. But I stayed invested, trusting that better times would follow.
In hindsight, that mattered. The rally that came afterward helped recover losses faster than I expected. The lesson was simple: the skill is not calling tops and bottoms, it is staying present long enough to ride the next upswing.
Lessons on Calmness in Investing
Rocket Lab and the broader market have taught me the same thing in different ways: calmness is not passive. It is a choice to hold conviction when everything around you says otherwise.
Calmness helps you see past fear.
Headlines come and go, but markets recover. Those who stay calm capture the upside.
Calmness protects conviction.
Averaging at $4.5 worked only because I tuned out the noise. Without calmness, conviction evaporates.
Calmness is clarity, not inaction.
Selling everything in January was a reaction. A calmer approach would have been trimming and letting the rest ride.
Calmness compounds.
One calm decision may not seem like much, but strung together they shape a portfolio. Over time they separate investors who chase noise from those who build conviction.
Closing Reflection
What stayed with me from that match was not the noise in the stadium or at home, but how the batsman finished with a six when the game was already in hand. Unnecessary on the scorecard, yet full of clarity and confidence. That is what calmness looks like. Not freezing under pressure, but staying present enough to finish strong.
It also brought to mind the final scene from Kung Fu Panda 2. Po faces chaos, cannons firing from every side. At first he struggles, but once he finds inner peace, he redirects every blast with composure. His power comes not from panic, but from calmness. Investing often feels the same. Markets fire headlines, volatility, and fear all at once. The edge is not in reacting faster, it is in finding your own center.
Yesterday, while I was writing this newsletter, a colleague told me he and his wife had been to a concert by Rishabh Rikhiram Sharma over the weekend and described how fabulous the experience was. That led me to discover his Sitar for Mental Health tour. I listened to a piece blending Game of Thrones and Harry Potter, calming yet playful, a reminder that calmness is not silence. Sometimes it is harmony born from forces that should not fit together.
For me, that ties it all together:
Calmness is a six under pressure.
Calmness is inner peace in the face of cannons.
Calmness is music blending worlds that should not fit.
Markets are no different. Narratives clash, conviction is tested, but those who find balance in the middle of it are the ones who give their portfolios the chance to compound.
I’ll leave you with the piece I kept replaying:
Disclaimer: These are personal reflections and stories from my own investing journey. None of this is financial advice.