Odyssey of stock market: What investors can learn from the Greek epic hero’s journey back home?

Christopher Nolan's rendition of the Greek epic 'The Odyssey' is ruling the box office, and stock market investors can learn a lesson or two from the timeless tale of a warrior’s long voyage back to home.

Global stock markets continue to see sharp upswings and downswings, leaving investors in panic. At the beginning of this year, new AI innovations sparked a sharp selloff in IT stocks on Dalal Street while global tech-faced markets like South Korea’s Kospi skyrocketed to massive levels. What followed was the raging war in the Middle East that sparked a massive rally in oil prices and trembled global markets. Meanwhile, the fizzling out of the AI frenzy led to a sharp selloff in global tech stocks.

While investors continue to ride the waves of the stock market’s constant cycle of high and low tides, they can learn a few lessons from Homer's epic hero Odysseus’ journey back home, fighting all perils.

What is 'The Odyssey' all about?

Odysseus, king of the Greek island of Ithaca, left his home to fight in the infamous 10-year long Trojan War. After defeating the Trojans, Odysseus expects a short sail back to Ithaca. Instead, the journey takes up another decade, as long as the war itself.

Storms blow his ships off route, and he and his crew land in several unknown islands filled with new perils. They get trapped in the cave of a one-eyed giant, Polyphemus, who eats several of Odysseus's men before the rest escape. The angry sea god, Poseidon, vows to keep him away from home after that escape, and the setbacks only pile up from there.

A witch named Circe turns some of his men into pigs. Sea monsters and a giant whirlpool swallow others. His own starving sailors kill sacred cattle belonging to the sun god Helios and are wiped out for it, leaving Odysseus as the only survivor. A nymph named Calypso holds him on her island for seven years, offering him eternal life if he simply gives up on going home.

Fighting all odds, Odysseus returns home after 20 years, only to find fresh challenges waiting for him. A house full of suitors moved into his palace, eating through the family's wealth and pressuring his wife to remarry, convinced her husband is dead. When Odysseus finally reaches Ithaca, he has to fight one last battle, this time in his own home, before the family is whole again.

What stock market investors can learn from 'The Odyssey'

Here are 5 lessons that stock market investors can learn from the Greek epic.

1. Resist temptations

At one point of their long journey, Odysseus and his men sail past the Sirens, who are notorious for luring sailors with their songs and never letting them come back. Being aware that he and his men would not be able to resist their call, Odysseus ordered his crew to plug their ears with beeswax. As he refused to plug his own ears, Odysseus ordered his men to tie him tightly to the mast, explicitly telling them to ignore his pleas to untie him until they safely crossed the island. As a result, he and his men successfully pass by the Sirens’ island and continue their journey back home.

The siren song is almost a symbol for the excessive market hype - meme stocks, panic-selling during a crash, or chasing hot tips. Investors often get lured into making such quick moves, only to regret later. However, Odysseus’ measures to not be lured by the Sirens’ song shows how important it is to have a disciplined approach towards investing and protect yourself from your worst impulses.

2. True value is shown in the long term

It takes Odysseus 20 years to come back home. During the journey, he comes across massive numbers of obstacles, including Gods turning against him, giants attacking their crew and even a witch who turns his crew into pigs. Yet, Odysseus perseveres in the face of adversity to reach his ultimate destination.

Nearly every investor enters the stock market to make money, but only a few succeed in doing so as they fail to realise that the true value lies in how a stock performs in the long term, even if it massively moves in the short term.

Notably, legendary investor Warren Buffett also supports this view on long-term value investing. He prefers companies with strong fundamentals, predictable earnings, and a solid margin of safety. Rather than chasing trends or trying to time the market, Buffett focuses on minimising downside risk.

Also read | Warren Buffett issues new warning, says tough to find value in market when everybody prefers gambling

3. Don’t seek instant profits

Calypso feeds Odysseus a blue-white lotus flower, making him forget the purpose of his life and erasing his memory of his family and war. This leads to a seven-year delay in the warrior’s return back home.

Similarly, the frenzy around short-term day trading, crypto flips, or options gambling, often makes investors forget their ultimate 20 or 30-year goal. High-frequency trading and speculative bets feel rewarding at the moment, but they often make the investor lose sight of long-term wealth creation. If an investment feels like instant entertainment, it is most likely not good for your long-term portfolio health.

Warren Buffett’s mentor and legendary market investor Benjamin Graham also advocated for the margin-of-safety principle. According to Graham, “The investor’s chief problem—and even his worst enemy—is likely to be himself”. So, always stick to your plan, not market mood swings.

"If you are buying one-day options or selling them, that is not investing, it is not speculating, it is gambling. We have never had people in a more gambling mood than now. It doesn't mean investing is terrible. It does mean prices for an awful lot of things look very silly," Warren Buffett said in an earlier interview with CNBC.

4. Avoid the trap of stagnation

Odysseus spends seven years stranded on the island of Ogygia with the nymph Calypso. She offers him immortality and continuous comfort, but it keeps him completely stalled away from his true home, Ithaca. Several years later, Odysseus realises this and returns home.

Similarly, holding risk-free assets yielding minimal returns feels safe and comfortable, but it can create a cash-drag that prevents your portfolio from ever reaching its ultimate destination.

5. Survival is the ultimate goal

Odysseus’ tale is not about him being indestructible or infallible. He makes mistakes, gets blown off course, and loses ships. What sets him apart is his adaptability, resilience, and patience - he simply survives long enough to reach home.

Similarly, investors often overly worry about missing out on investment opportunities that could have turned to multibaggers and made huge profits for them. However, it is their patience that can make them winners in the long term. The investor's goal should not be to beat the market, but to make money along with it.

As Graham puts it, investing "isn’t about beating others at their game. It’s about controlling yourself at your own game."

Christopher Nolan's ‘The Odyssey’ is now in cinemas across India and the world, with Hollywood actor Matt Damon in the role of a Greek king Odysseus. The cast of the movie also includes other popular names including Tom Holland, Zendaya and Anne Hathaway.

Also read | Who is your worst enemy in markets? Here’s what Warren Buffett’s mentor Benjamin Graham says

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)