Hey.
In the markets…
…our convictions fight against each other.
Cut to the ongoing core IT vs AI standoff.
With mega spends on standoff propaganda alone, currently, the AI lobby is winning.
Not…
…comprehensively.
I fight from the core IT lobby side, which, btw, is evolving, obviously not fast enough in the eyes of almost all, and the image badgering continues.
One admits to being wrong for a while.
Admission means action.
Low-conviction SaaS names bow out. Losses taken. From what remains, stronger names bought, in innovative arenas. Ballast. Bought. Clean balance sheets. Vision. Bought.
Coming to the high-conviction names, they will remain.
However, taking on the humiliation of admitting, accepting and dealing with low-conviction losers is something I am deliberately doing.
I’d much rather discuss my losers with you.
It doesn’t mean I’m not holding winners.
It’s just that I’m choosing to discuss my losers with you.
On purpose.
A little bit of humiliation everyday, admitted, acted upon, and gotten rid of, goes a very long way. One wakes up to holding multibaggers, one fine day, sooner than later, in this manner.
And on that day, some of my high-conviction IT names, if still around in portfolio when they beat the propaganda machines of the AI brigade by posting unexpectedly great results, will then also count amongst the multibaggers held.
On the other hand, if this doesn’t happen for a longish enough time, high convictions will turn lower, ultimately underceding a minimal threshold. Since I finance my expenses by selling losers, and put my income into fresh potential winners, underceders will eventually exit. That’s the price one pays for pursuing multibagger accumulation.
Point is, ultimately, losers find the exit door. Before they become losers, they get ample leeway, measured both in time, and in notional losses, since conviction is, for that long time period, high enough to not identify them as weeds. However, once mentality flips, the weed is born in the mind. Once the mind makes up its mind that something is a weed…
…that something needs to be weeded out, …
…only to be replaced with potential flowers, …
…again, and again and again.
