The Psychology of Compounding: How to Lose Less and Earn More ft E.A. Sundaram on The India Opportunity Show
One of the most respected and understated fund managers in Indian Stock Markets
Hello everyone, welcome to The India Opportunity Show where you get a front-row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators, and successful leaders from different fields to bring you real-life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.
Episode 10, Season 3 of The India Opportunity Show is out now! You can watch it on YouTube or listen on Spotify or Apple Podcasts.
My guest today is E.A. Sundaram — one of the most respected voices in Indian public markets. With over three decades of investing experience across firms like Zurich India, HDFC Mutual Fund, and now as Executive Director at BugleRock Capital, Sundaram has built a career defined by intellectual clarity and disciplined capital allocation. He’s seen every market cycle up close — from the liberalisation era to India’s current structural bull run — and through it all, his focus has remained unwavering: protect capital first, compound it second. In this conversation, we explore how temperament, research, and philosophy come together to create enduring investment performance — and what it really takes to stay rational in irrational markets.
00:00 - Teaser
03:36 - Be Consistent, Not Best
07:18 - Lessons from Market Bubbles
10:27 - Market Cycles Explained
13:22 - Doing Right vs Avoiding Wrong
18:10 - Four Investing Mistakes
22:38 - Common Investor Traps
26:14 - Family Office Strategy
29:33 - Circle of Competence
32:47 - Control What You Can
35:14 - Common Sense Investing
37:06 - Buy Quality When Unpopular
39:16 - Indraprastha Gas Example
42:01 - Psychology & Communication
45:48 - Align Values with Clients
48:02 - Realistic Market Returns
50:14 - Finding New Ideas
51:16 - Position Sizing Rules
54:53 - Identifying Quality Businesses
01:02:04 - Temporary vs Permanent Issues
01:04:23 - Four Reasons to Sell
01:07:10 - SBI Turnaround Case Study
01:10:03 - Balanced Portfolio Strategy
01:11:15 - Cash as Opportunity Tool
01:13:28 - Avoid Risky Sectors
01:14:10 - Current Market Opportunities
01:15:25 - Bullish India Themes
01:16:39 - Key Market Risks
01:18:43 - Build Resilient Portfolios
01:20:17 - Discipline & Time Horizon
01:22:10 - Avoid Envy in Investing
01:23:29 - Lessons from Mistakes
01:27:38 - Redefining Success
01:28:45 - Spend Less Than You Earn
01:29:16 - Lessons from Mentorship
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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.