You Might Think I’m Crazy

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you might think i’m crazy

to hang around with you

maybe you think i’m lucky

to have something to do

…

you might think it’s foolish

or maybe it’s untrue

you might think i’m crazy

but all i want is you

The Cars

Some years ago, we went to see “Cars 2” with my daughter and her cousins. Yawn, I thought. Animation movie, blah blah blah, but anything for the kids, when suddenly, above song started playing and took me back to school. How appropriate, a song by the Cars in a movie called Cars. Actually ended up enjoying the movie.

Anyways, something about the lyrics caught my attention.

What do you read in this space?

Words, words, words.

No graphs. No images. No math. No numbers, really. 

And this blog is supposed to be what? A commentary on applied finance?

So am I crazy?

Maybe, …

… but, this is exactly how I want to do it. 

No hocus-pocus. 

Here, we break it down to the bare minimum. 

Words. 

We talk. 

It’s all very light. 

You read through in a jiff. 

There’s a powerful flow which you might not even be aware of. 

And, as the lyrics say, all I want is you.

Yes, I want your attention, and I want to keep it riveted. 

How am I to achieve that in an age of very short attention spans?

We keep it simple. Bare minimum stuff, wrapped in enjoyable words. Stories. Analogies. Parallels. Bridges. As seemingly non-finance as possible, but still not missing the point.

Sure, I still could be crazy.

What do I hope to achieve?

So much time involved.

All this for free.

Yeah, I really must be delirious.

Stop. 

It’s deep. 

I enjoy writing. 

It relaxes me. 

My thoughts get organized. Concepts get strengthened. I focus. Many mistakes in my approach get nullified. I don’t want more from this. 

Also, it’s my giveback. I use a lot of free stuff from the net. I give this for free. It’s all a give and take. 

So, just bear with me. 

Read if you want to, it’ll make me happy. 

It is definitely a different way to learn about finance, with all the jugglery left out. 

Well, why not?



 

 

Understanding and Assimilating the Fear-Greed Paradox

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Holy moly, what are we talking about?

Let’s say you’ve done your homework.

You’ve identified your long-term stock.

Fundamentals are in place. Management is investor-friendly. No serious debt issues. Earnings are good.

Valuation is not right.

You wait.

How long?

Till the price is right.

What happens if that doesn’t happen.

You don’t pull the trigger. It’s difficult, but you just don’t pull.

Let’s say the price is becoming right.

You are looking for an extra margin of safety.

You are waiting to pounce. How long?

What’s your indicator?

Your gut?

Many things have been said about the gut.

It does feel fear.

Look for that fear.

Scrip is near a very low support, but holding. You are afraid that this last support might break and that the scrip might go into free-fall. Look for that fear. There goes your buying opportunity, you are probably saying. Intraday, support is broken. You are now sure it’s gone. Look for that feeling. Intraday, scrip comes back. Closes over support. Large volume. This chronology is your buy signal. You pick up a large chunk. Scrip doesn’t look back.

You don’t have to go through this rigmarole. You don’t have to bottom-pick. This exercise is for those who want that extra margin of safety.

Now invert the situation.

You’re sitting on a multibagger.

Lately, you’re not agreeing with the company’s business plans. You want out. Best time for you to exit would be now, sure. But, scrip is in no resistance zone, and is going up and up and up. What do you do?

Look for greed within yourself, when you start saying “Wow, this is going to be the next 100-bagger!” Look for the moment during this phenomenal rise when you’re getting attached to the scrip and don’t want to get rid of it, despite having concluded that you don’t agree with the vision of the promoters. Look for the time you start going “My Precious!”

Sell.

This chronology is your intrinsic sell signal.

Sure, radical.

I agree.

Sure, I’m combining trading techniques to fine-tune my investing.

I’ve stood on the shoulders of giants.

I’ve seen from their heights.

It’s time I start contributing.

Are There amy WMDs in the Markets?

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What’s a weapon of mass destruction in the markets?

Well, practically anything that the masses don’t know much about, and are being handed on a platter in a repackaged form, to savour. 

Sure, I’m using one of Warren Buffett’s analogies here. Loosely requoted, Buffett once warned, that futures and options were weapons of mass destruction (in the hands of those masses, who didn’t know much about them, but still used them). 

Yeah, I will stand upon the shoulders of giants if required. 

As long as I quote them, I’m good. 

The view from their shoulders let’s one think from a height. That’s an ideal situation for fresh thinking. 

Supposing something new comes up. That would be a contribution from my side. And why would it have happened? Because I took the liberty to stand upon the shoulders of giants. 

Bottomline is, that everything can be classified as a WMD if one is handling it and doesn’t know much about it. 

Equity is a WMD for newbies. For someone who spends many hours a day for many years, delving into Equity, the scene can be quite different. 

Rome wan’t built in a day. 

You don’t become a PhD in a day. 

You can’t master Equity in a day. 

Or anything else, for that matter. 

Do your homework. 

Put in the hours and the years. 

Burn the oil. 

Take what you do seriously. Not casually. If you’re casual about any professional line, drop it now, or start pursuing it seriously. 

Why do you want to give something the power to become a weapon of destruction?

You don’t. Period. 

The Market Aha Moment

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What is an Aha moment?

Any ideas?

Simple. It’s when you go “Aha, so that’s what it’s like!”

Or “Aha, so that’s what it’s supposed to be!”

You’ve understood something big. Finally. You see light. That’s an Aha moment. 

The human being likes to be happy. 

Professional happiness adds to our well-being. 

To be professionally happy, you need to be doing something during which you forget about time. 

What is this something for you?

Wait for your Aha moment. 

Let’s assume you’ve decided upon a profession in the markets. The next question is… which market?

Which market draws you out fully? Which market consumes you? In which market do you perform the best? In which market are you happy?

Why isn’t your Aha moment coming here too?

Well, Aha moments aren’t for free. You have to struggle for them. 

Start trying out different markets. 

See what gives you a kick.

See where you have a natural flair.

See what lingers.

Discard what you can’t stand.

Hit and try.

Try everything if you must.

Eventually, something will speak to you.

You’ll want to be in one particular market, perhaps two.  

It’ll be your calling. 

Aha. 

I’ll tell you how it went with me. 

I started with Equity. 

Fluked a few. Made some money. Bet bigger. Thought I was good. Won some more. Bet really big. Lost huge. Thought to myself – no more Equity. 

Then came Gold and Silver. Did ok. Found it boring. No more Gold and silver. 

Tried Private equity. Did ok. Boring. 

Arbitrage. Boring. But, an avenue for parking.  

Real estate. Corrupt.

Commodities…didn’t get a kick. The delivery option always loomed over my head. What if I forgot to square off?

Stock futures. Got hammered. No more. 

Foreign stocks. Time difference killed my evenings. Out. 

Foreign mutual funds. Expense ratios were sky-high. Slugged it out for a while, but then finished it off. Lost. 

Structures – broke even, then won a bit. Got bored. 

Debentures. Only do short term ones, to park funds. No kicks. Debt is boring by default.

Mutual funds. Yeah, well, did my fair bit of them. Did excite me, since they were connected to Equity. As of now, there’s just light MF activity. 

Stock options. Lost a bit, but didn’t actually get hammered. Gave me a bit of a kick. Well, it was Equity related, so no wonder. Started interfering with my second Equity stint. I let options go. 

Second Equity stint. Did ok…ok…ok…lost a bit, won a bit, was enjoying it, when suddenly…came Forex. 

Forex…whoaahh…I loved it. Swept me away. Technology, charting, skill-set, I wanted to be here. Aha. Huge leverage, though. Risk. This had to be my second game, not my first. Yeah, safety first, always. Alright, what would be my first game? Yeah, what would be my bulk game? 

Equity of course. I understood it and enjoyed it. I’d done ok. Had leant lessons. Knew how to handle it. Infrastructure was in place. Aha. Nailed it in the third attempt.

So and thus, I found my games upon my Aha moments. That’s where I am. Don’t plan to do anything else.

When’s your Aha moment coming?

Work towards it. 

Whose Game Are You Playing?

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Are you playing your game?

No?

Why not?

Why do you play someone else’s game?

Do you think that’s going to make you happy?

Just for the record, working for someone doesn’t necessarily mean you’re playing that someone’s game. You’re walking a common path with someone. Could be your boss. Spouse. Parent. Sibling. Whosoever. You could still be playing your game.

Life’s a game too.

A game doesn’t mean you have to rule over someone, or something. Wherever there’s a lesson to be learnt, a game is on. When we talk about your life-lessons, we talk about your game.

If I’m not mistaken, life is about learning. For some of us. There are souls who come to spend surplus Karma. Once this is exhausted, their game changes by default, since the lessons start again.

We come face to face with people and situations… to learn. The same people and / or situations keep reappearing till some learning is fully learnt. They can appear in an overbearing role, but you’re still playing your game. You’re learning your lesson. Or not. These people and / or situations cause you to behave as per a groove which has encompassed your life. The lesson is to learn how to break out of the groove. If you’re learning the lesson, you’re playing your game. If not, you’re playing someone else’s.

Play the market. Play your game with the market. Someone else’s successful market game might lure you. It won’t give you lasting succes. Why?

Someone else’s successful market game caters to someone else’s psychology. In crux situations, you will falter in that game. You will lose it all. That someone will succeed. He or she has spent years devising a game which caters fully and totally to his or her psychology and risk profile. Not to yours. He or she cannot know as much about your own psychology and risk profile as you do. Therefore, devise your own market-play. Then, play it.

It takes years or perhaps a decade to discover and understand your behaviour, psychology and reactions to varied market situations. Be there. In the market. Make small mistakes. Learn your lessons. Understand your grooves. Devise a comprehensive strategy around this.
That’s your game.

What are you waiting for?

Play it.

🙂

Less is More

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Fill your plate.

Work.

Go all out.

Nobody’s asking you to work less.

Research.

Hit it with your best shot.

Do quality work.

Work with the best tools.

Enjoy your work…

…so much so, that time ceases to exist.

Yeah, that means you’ve found your calling.

However, connect less to live Mrs. Market.

Here, less is more.

Keep her away as much as possible when she’s live.

Only connect live when you really, really have to.

What are you achieving?

Minimal bogging down live market forces.

You’re away from the pandemonium, the confusion.

You’ve set your self up brilliantly, to think clearly.

Now, gather your thoughts, gather your research.

You get into the Zone.

You have a purpose.

It can be anything. A market instruction. An instrument alteration. A structural change. A query. A test. A probe. A check. Something small. Something big.

With your purpose right before your eyes, connect live.

Solve your purpose.

Disconnect.

Relax.

Let remnant market forces leave you, yeah, let them dissipate.

Do some other stuff for a while.

Then, when you’re ready, get back to your research.

If you’re not ready after a while, call it a day.

Go for a swim. Or something.

Take that –>@&%# Mr. Peer Pressure

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Dear Mr. PP,

I don’t give in to you, never have, never will.

You’re not that important.

I don’t spend my time thinking about you.

I don’t respect any entity without a backbone, and you certainly don’t have one.

I’ve met you many times.

At first, I felt you, and was taken aback. You wanted me to do something I didn’t wish to do. You were strong.

I was stronger.

When you don’t know anything about the reputation of your opponent, frankly, you don’t give a d*m*. You fight. Till you fall or till the other fellow backs down.

I won my first head to head with you. Thank my stars.

After that I found out who you were. Yeah, who was it exactly that I didn’t succumb to?

After I’d grown up and all, and fully realized your devastation potential, I always leaned back on my first head to head. I mean, you were beatable. Period.

Yeah, I was lucky to have beaten you first up. It’s been a huge psychological advantage.

I’ve carried over this advantage into my market life.

Take a hike, Mr. PP.

[As far as market related activities go, I follow and advocate an unbiased, singular and customized path which doesn’t follow any crowd or any myths as such.

This path certainly does not let me invest under any kind of pressure.

Where there’s pressure, there are vested interests.

Please beware of investments which don’t suit your risk profile and are touted to quench vested interests].

Breathing Time

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Ideas…

… make the world spin.

At the core of any genius achievement is at first… an idea.

Ideas don’t come for free.

A certain degree of evolution translates into a corresponding idea.

Evolution costs.

Pain is a precursor to evolution.

Not every good idea is lucrative. Lots of bad ideas emerge too.

We’re concerned about sifting through the noise.

A potential candidate emerges, let’s say.

You feel you’ve got something.

What’s the next course of action?

Sit.

Don’t jump.

Let it breathe.

It will either continue to breathe, becoming stronger day by day, until it is so strong, that it coerces you into expression. Or, if it’s weak, it’ll die. It might even transform… … into something stronger.

Let the idea make you want to jump. Yeah, let it become that strong, inside of you. You’ve been sitting, remember?

Why?

Why this whole rigmarole?

You want a high success translation percentage.

Why not? It’s human nature.

And that’s why.

Strongly evolved ideas translate more easily into systems of success.

Even if you don’t remember me, remember this line just above.

Thanks.

Cross-Section Through a Performing System

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You’ve struggled, as a result of which you’ve developed a system. 

This is your system. it is invaluable to your market play. It performs. 

Your system comprises of structures.

A structure takes something to emerge. It doesn’t come for free. You need to pay for it with sweat, losses and tears. Once it emerges, it is yours to incorporate. 

You know its value. You’re not going to let it go… …unless a better structure emerges, which makes its predecessor obsolete. 

Normally, it doesn’t come to that. Structures don’t become obsolete just like that, and hence, you rarely let a structure go once it has emerged.

What you do is the following. You incorporate the new structure into your system by fine-tuning old and new, making them work in tandem.

Your system has become richer by one structure, although the combination of old and new outdoes 1 + 1 = 2 easily. 

Sometimes, a new structure starts to emerge, and blinds you. You want to plunge in. You want to raise the required funds by sacrificing your existing and lucrative structures. Happens sometimes. 

DON’T.

Yeah. 

Don’t sacrifice your existing structure. 

If the lure of the new structure is so great, well, then borrow if you have to against your old structures, but for heavens sake don’t sacrifice them. 

Squeeze your old structure till it coughs, but don’t kill it. 

Because you’ve squeezed it by borrowing against it to finance the implementation of your fancied new structure, well, you’ve been able to then implement this fancied new structure. 

Fine. 

You’ve got what you wanted. 

Now loosen the stranglehold upon your older structure to prevent it from dying. 

Yeah, bring it back. Revive it. Pay back what you borrowed against it from your ongoing cash-flow, till the complete debt is nullified, so that your old structure breathes easy again and resumes yielding you money. 

Voilà – now you have two structures adding to your income, presuming that the newer structure that emerged was ripe enough at birth to start yielding income immediately. 

That’s how you do it. 

What’s the Frequency, Flipkart?

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Hmmm, a zero-profit company…

In fact, a loss making company…

Do you get the logic?

People are probably seeing an Amazon.com in the making.

Amazon exists in a highly infrastructure-laden country with systems.

Can we say the same about us?

As of now – no.

Are we on the trajectory?

Sometimes yes, sometimes no. It’s been five steps forward and then three back till now.

What’s all the hype about?

Institutions want to make money during the ride.

Whether the ride culminates into an Amazon.com is irrelevant for institutions.

Public opinion acknowledges the ride.

That’s enough for institutions.

They’ll ride to a height and exit, irrespective of any MAT or what have you.

While exiting, they’ll hive off the hot potato to pig-investors in the secondary market, post IPO.

Hopefully, a valuation is calculable by then. Even the PE ratio needs earnings to spit out a valuation. No earnings means no divisor, and anything divided by zero is not defined.

Keep your wits about you. Follow performance. Follow earnings. Follow bearable debt. If you see all three, a sound management will already be in place. Then, look for value. Lastly, seek a technical entry.

Don’t follow hype blindly.

Cheers! 🙂

All I Need – Is One Look In Your Eyes…

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All I need is the rhythm divine
Lost in the music
Your heart will be mine
All I need is to look in your eyes
Viva la musica
Say you’ll be mine


With due respect to Enrique Iglesias, to whom the above lyrics belong, he’s not the only one. 

We all need motivation. 

Many of us are self-motivated. 

What drives us from within?

A goal.

Sometimes, we stolper. Our drive takes a hit. Self-motivation dips. 

Reasons could be many. Sheer exhaustion, repeated failure, being a square box in a round hole for far too long, what have you and blah blah blah. 

We’re not bothered about the reason here. We’re bothered about the fact. Sometimes, we get demotivated. We stop performing. 

Who needs to step in here?

Our closest ones.

Yeah, they live closest to us, and if they possess an iota of sensitivity, well, they should sense our emotional graph going down. 

Mostly, they do. And, upon recognition, they step in. We feel wanted, loved, and our motivational levels start to go up again. 

Sometimes, our closest one is not sensitive enough, for whatever reason.

Maybe we’re too “strong” to let it show. Maybe our closest one has other, bigger issues to deal with. Whatever. That’s not the important rumination.

What’s the important question here?

Yes, how do we get it back? Without a hand to hold. This one’s big. 

No hand to hold – whoahh – it’s tough. 

Is there a way out?

Do we change our closest one?

Is it that simple?

Sometimes, children are in the equation. Changing isn’t an option we’re discussing here. 

Firstly, we need to shut down on this one want from our closest one. 

Ok, now what?

Motivations’s got to come – from within. It’s a funny thing. It just does. Wait for it. To come from within. 

It needs a catalyst – an event – a trigger – the crossing of an activation barrier – something like that. 

Wait for the catalyst to occur and have effect. 

What do you do meanwhile?

Other things. 

Chant. Meditate. Travel. Play with your child. Take up a temporary assignment elsewhere. Do stuff. Life’s big. So many things are happening. Do something – else.

The catalyst occurs. 

Motivation starts to ooze. 

You’re back in business. 

You didn’t break your sacred environment. 

Maybe your closest one will realise, and will be sensitive next time.

On the other hand, maybe he or she won’t. 

Does it bother you now? You’ve discovered a way out after all.

It probably pinches just a bit. 

Let it. Things could have been much, much worse, which they’re not, so count your blessings, and just let it flow. 

🙂

Loneliness of the Successful Investor

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Walked alone?

No?

Please try.

Success needs original ideas. Original ideas need solitude.

Successful investors walk alone.

Sometimes, they’re lonely.

Investing is more about sitting than action.

Sitting around inactively breeds loneliness.

The antidote is activity – other activity. Not market-related.

Successful investors do other stuff to tackle this loneliness.

Buffett plays poker.

Branson is breaking into some virgin territory or the other.

Gates is busy souping up his home.

Trump trumps.

Jindal plays polo.

Mallya’s sole focus has been other stuff, so much so, that he’s become unsuccessful.

Mahindra loves to tweet.

Tata walks his dog.

Sachin watches Wimbledon live.

Mr. Bean is seen on the F1 circuit.

You get the gist.

These people follow one or more “other” activity / activities so passionately, that they forget about their main activity for a while.

Their system recuperates. Time is bridged to the next instance of main-frame action. While traversing this bridge, body, mind and soul have recuperated. System is fresh, ready and waiting for new action.

When you’re walking alone next time, you’ll be able to deal easily with any loneliness on the path.

One might make moderate returns, investing with the masses.

To outperform, though, one needs to walk alone.

The successful investor realizes that he can’t get out of this one.

Therefore, the successful investor creates a way to still come out winning.

This is human capital at peak performance!

What’s the Intrinsic Value of Inflation – FOR YOU?

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Pundits taught about Inflation.

It ate into you.

Did it discriminate?

Nope?

Did life discriminate?

Or was it your Karma?

So you made it to HNI, without perhaps knowing what HNI stands for.

You’re a high networth investor, bully for you.

Here’s a secret. You’re not really bothered too much about Inflation.

What?

Yeah. Don’t bother too much about it. 

Why?

It’s eating into you, given, right. 

By default, you need to look into something that’s eating into you, right?

Well, right, and then, well, wrong. 

You had a hawk-eye on inflation till you made it to HNI. Well done, correct approach.

Now, you’re gonna just use your energies for other purposes, for example for asset allocation, fund-parking patience, opportunity scouting, due diligence – to name just a few avenues. 

Why aren’t you using even a minuscule portion of your energies to bother about the effects of inflation?

Well, simply because it’s not worth the effort – FOR YOU – now that you’re an HNI. 

Sure, inflation will eat into you. However, the way you handle your surplus funds will defeat its effects and then some, many times over. Use your energies to maximise this particular truth. 

What makes you an HNI? Surplus funds to invest, right?

Surplus sits. 

It waits for opportunities. 

An entry at an opportune moment gives maximum returns.

You’ve sifted through the Ponzis. You’ve isolated multi-bagger investments. You’re waiting for the right entry. 

Meanwhile, old Infleee is eating a few droplets of your wad. Let it. Focus on what we’ve discussed. A multi-bagger investment entered into at the sweet-spot could well make ten times of what old Infleee eats up. 

Go for it. 

Hanging On to a Structure

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How does one build a wall?

Brick upon brick, right?

One doesn’t usually take out the brick two layers below to use elsewhere. Common-sense. 

Why should it be any different while building a rock-solid portfolio?

Well, it’s not. 

Those who feel it is will soon realise… that it’s not.

You set up an investment.

You then see it through to its logical conclusion. 

You don’t let it go in between… …unless we’re talking about a life and death situation.

Apart from this one caveat, you just don’t let the investment go. You see it through… to its logical conclusion. Period. 

Meanwhile, other opportunities arise. 

You are tempted to get into them. That’s what opportunities are for. 

Now you need to be creative. 

You’re not letting one structure go for the sake of creating another. 

You are going to keep the former and create the latter. 

How?

Dig into your reserves.

How were the reserves created?

They were created by former structures that were seen through to their logical conclusion. These contributed along their paths and upon their culmination. 

Reserves not enough?

Borrow agains a former structure. 

Don’t borrow big. Borrowed amount should not be big enough to harm the former structure, but big enough to couple with your reserves and see your new structure through. 

Still not enough? Requirement for new structure not being met?

Let the new structure go. 

Opportunities keep coming and going. No one’s got a copyright on opportunities. 

Save up for the next one. 

Brick by brick, remember. Without sacrificing the bricks below. 

🙂

The Thin Line

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Have you met the thin line…

…  between ambition and greed?

You see it. You want to cross it without wanting to cross it.

What stops you?

A deadly sin is… deadly. If you’re sensitive enough, you do fear the effects of a deadly sin.

Greed can ruin. It has the capacity to upset an apple-cart.

Sometimes you want something that extra much.

Ambition turns into over-ambition.

You get your something.

You’re a go-getter.

You become over-confident.

You forget your basics.

Next few times around, you cross the thin line repeatedly. The high is addictive. Soon, you’re crossing…

… without even knowing.

Yeah, the vicious cycle outlined above has made you insensitive. You’ve stepped over, don’t even know it, and on you’re going. You’re blinded by greed.

It’s not happened overnight. First the thin line beckoned you to come back. Your over-ambition spurred you on a few steps more. A few more steps wouldn’t harm, right?

Wrong.

You’re not sensitive anymore. You’ve lost normal vision. You’re greedy for your goal. You’re not sticking to your basic tenets. You’re not playing safe anymore. You’ve started to even play with your safety moat, in order to achieve an even bigger goal.

You’ve set yourself up to fall… big.

If you do, I hope for two things.

First up, I hope you don’t fall too big, and that you can get up again.

Second, I hope that this fall is your last one, and that it has made you sensitive again.

Sensitive?

Towards what?

Yeah, sensitive towards the thin line.

The Price of Value-Addition

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Does value-addition carry a price-tag?

You bet.

What, you thought you could add value… for free?

Naehhhh.

Good things in life generally don’t come for free.

One doesn’t value the best of things that are free. One treats them cheaply… because they’re free.

In the marketplace, free-kinda stuff always comes with a catch, or a trap.

Ponzis use high-return free money ad-tags to lure pig-investors.

I generally steer clear of free-kinda stuff, anywhere and anyhow in life.

Don’t be afraid to pay (well) for value-addition.

By adding value, you’re doing yourself a huge favour. You’re creating an asset that will generate towards your corpus on auto-pilot. Why should something like this be coming for free?

In fact, why should something like this not be appropriately expensive?

I Don’t Want the Cancer

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Are you hurt?

A.

Do you want the cancer?

B.

I do get hurt. Yeah, things hurt me. I’m an emotionally penetrable human being.

Fine. That’s me.

What I definitely don’t want is option B.

Who wants option B?

Can’t think of anyone.

Who gets option B?

Many.

But who?

Those who can’t forget the hurt. Yeah, people who’re unable to move on.

To forget the hurt and move on, simultaneously saving ourselves from the cancer, we need to forgive.

Someone’s misbehaved. Hurt you. Are you going to ruin your future days? No.

Forgive. Forget. Move on.

Just remove the mould in which cancer can potentially set in.

What makes you think it’s different in the markets?

A loss is a hurt.

Need I say more?

You can do the math.

A Secret Ingredient for Equity-People

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Racking your brain about how to make Equity work?

Don’t.

Two words work here. 

Be passive. 

Learn to sit. 

Let’s say you’ve gotten all your basics right.

Company is great. Management is sound. Multiple is low. Debt is nil. Model looks promising. Yield is note-worthy. Technicals allow entry, blah blah blah…

Then what?

Yeah, be still. Learn to sit. 

What are the prequisites for sitting?

You need to not need the stash you’ve put in, at least for a long while. 

You also need to get your investment out of your primary focus. 

For that, your day needs to be full…of other main-frame activities. 

Make Equity a bonus for yourself, not a main-course. That’s how it’ll work for you. That’s the secret ingredient. 

How to… … is stated above.

Why to? Aha.

For it to work, fine, but why the sleeping partner approach?

Human capital needs time to show results. 

That’s why you’re in Equity, right, for human capital? The rest is ordinary stuff, but human capital is irreplaceable. Human capital works around inflation. One doesn’t need to say anything more. 

You’ve got your work all cut out.

Get going, what are you waiting for? 

Finding Structure Within

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You are you. He is he. She is she. I am I. It is it. 

Even if the above is the only thing that you carry home from this space, you’re done already. 

Move on then, with your life, because you’ve understood something big. 

If not, do please read on. 

You are not I. I am not you. He is not she. She is not he. That’s it. 

Here’s the next biggie.

Those who come into funds need to know how to manage them. Period. 

Do what you want. Run umpteen miles. Put up a million facades. Muster up all the drama you’re capable of. After that you’ll come to this conclusion …

 … that nobody else is more capable of managing your funds than you yourself. 

Why?

Because you are you. You know yourself best. A third party is firstly (realistically) not bothered about knowing you, and secondly is only capable of seeping into a minuscule portion of you, if he or she makes the effort. Forget about third parties. 

So you realize you need to manage your own funds, what then?

Jump into the water.

While your corpus is small, make mistakes. Learn from them. That’s college. Tuition fees.

Recognize your strengths. Play to them. Pulverize your weaknesses after identifying them.

Then come the structures, from within. These are your structures. They’ll come from inside of you. 

There’s you, and there’s the battle-field. The two are face to face. It’s a do or die situation. You go into reflex-action mode. Your systems start to function at full capacity. That’s when structures emerge.

Yeah, structures need an activation barrier to emerge. 

There’s a protective structure. It’s your protective structure. It guides you to build your moat. It protects your family. 

Then there’s your post-protection bulk-game structure. It guides you towards building up your innings without the worries of basic bread and butter. 

Lastly, there’s your multiplication structure. It chalks out high-reward-high-risk strategies, tweaks them towards maximum possible safety, and tells you where to put that minute percentage of your corpus with the intent of achieving extra-ordinary gains. 

Allow such structures to emerge. Embrace them. Innovate. Improvise. Achieve. Educate.

Go for the jugular. 

Who are You?

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Who am I?

Do I know?

Am I trying to know?

Is this an important question for me?

What’s my path?

Where am I on this path?

What are my basic goals in life?

What are my weaknesses?

What am I doing to make these my strengths?

What motivates me to perform?

Does my environment enhance my performance?

Or does it hamper me?

If it does, what am I doing about it?

Am I tweaking my environment?

Yeah, am I manipulative enough?

Am I content with the hampering?

Why should I be content with the hampering?

Because it makes me grow, as in evolve?

Maybe.

Who are you?

What are your defining questions?

How do you unravel?

Ultimately, what is your risk profile?

Who are you… sure… very valid question.

Why?

It’s the basic precursor question with regard to another important question.

Who are you as far as finance is concerned?

In the field of finance, you need to know your risk-profile, and you need to have a defined meta-game-plan.

Defined as per who you are.

Uniquely, for yourself.

Bye 🙂