Hanging by a Thread
Back in 1915, Passenger Shipping companies were struggling to stay afloat, so every penny counted. During that time Captain William Turner was in charge of the massive steamship RMS Lusitania, which regularly sailed between New York and Liverpool, carrying passengers across the Atlantic. During one sail in May, Turner made a small but important decision: he shut down the ship’s fourth boiler room for this particular trip to save on fuel and cut costs.
At first glance, it seemed like a smart move. It saved fuel, helped the company’s bottom line, and only caused a one-day delay in arrival—a minor delay compared to the money saved. No one thought it would matter much. After all, a single day didn’t seem like a big deal for such a huge ship.
This small action triggered huge consequences. That one-day delay meant the Lusitania ended up sailing right into the path of a German submarine, U-20, in the Celtic Sea. On May 7, 1915, without warning, the submarine fired a torpedo that struck the Lusitania. The ship sank fast, taking nearly 1,200 innocent lives.
The tragedy shocked people around the world, especially in the United States. Until that point, the U.S. had tried to stay neutral in World War I, but the attack on a civilian passenger ship stirred strong public outrage. The sinking of the Lusitania became one of the most powerful reasons the U.S. decided to join the war, forever changing global history.
Turning Off a boiler = One Day Delay = Coming right in way of a German Submarine
Small Actions = Big Impact
The above is a tragic example but point to ponder that all big impact event must occur with a small single decision that shape future. In case of investments, investors take many small decisions which leads to bigger financial impact. ‘Waiting for market to correct’, ‘Taking investment decisions from gossips’, ‘Investing under obligation’ etc. are small decisions but they amplify in future. It is long time gone when investors realize that they have taken wrong decisions and now nowhere to return.
At Shalibhadra, we believe that no actions are perfect but one need to keep correcting the course in form of Portfolio reviews as time arise.
Nishit Siddharth Shah