Before we start, for transparency, neither I own Indigo in my portfolio nor I’ve ever recommended it to anyone.
From stock market point of view, the current Indigo crash teaches one a lot of things:
1. Things can go wrong out of the blue and stock price can take a heavy beating. Nobody knew this coming.
2. That even a monopoly stock can take a beating.
3. This is stock market. Once you buy stocks, they can go down too. And very fast. There’s no contract that if you buy a stock, it’ll go up only.
4. There’s no guaranteed return. Stocks are not FDs.
5. Stocks are NOT for those seeking safety. If you want safety, buy bonds or FDs (Technically, they too aren’t safe).
6. A business can do great. Thrive. Command 60% market share. But regulations can take things south.
7. Even blue chip, proven businesses can see 30-70% price corrections. Volatility is nature of stock market. If you cannot digest volatility, you should be out of stock market. Period.
