Banking on Infinity

In a market…

…that promises decent…

…long-term growth, …

… we are able to…

…bank on infinity.

In such a market, the concept of cost-free-ness proves successful …

… in that it is able to generate multibagger outcomes, …

… over the very long-term. 

In such a market, the power of compounding makes itself felt in its full glory.

Also, in such a market, fear goes out the window for the clued-in player, since one is able to…

…bank on infinity.

We are fortunate to be playing in one such market. 

Yes, one such market is our very own. 

Having said that, India has idiosyncrasies, as does every market, and the Indian angle on these is definitely unique. 

The main one is that we’re an emotional lot. 

That is automatically then reflected in our market too. 

High beta. 

Meaning, in normal English, that there will abound huge entry opportunities, and huge exit opportunities, on a regular basis. 

And that, if I may underline, is worth Gold for us in the pursuit of cost-free-ness.

In other words, we will be able to create cost-free-ness year upon year, month upon month, and, at times, like now…

…week upon week.

Is that not…

…wonderful!

Once cost-free-ness is created, we transfer it out of sight, and, banking on infinity, we can just sheer forget about it, focusing our attention on the next round of cost-free-ness-creation.

We can do that because we are in the right type of market for this particular model. 

In fact, this model has been conceptualised for exactly…

…this market. 

Maybe someone has done it before me. Perhaps a lot of people. More successful. Big players. Famous. And that’s huge. I’m happy for them.

However, that’s not the point. 

We’re not in this for the glory of who got there first.

We’re in this for generating long-term wealth by using the concept to the hilt, because it’s working, and promises to do so till into the far-foreseeable future.

Before I sign off for now, there’s one more thing to remember. 

When we bank on infinity, we most hold before our eyes, that the translation of long-term growth into long-term wealth…

…is not linear.

Growth is perceived in spurts of optimism spilling into over-optimism, and these become our exit opportunities, where we exit with our principals, and are left with stacks of cost-free-ness. 

During spurts of pessimism, spilling into sheer depression, prices dip low enough, such that we, once again, get representable entries. 

It’s a neat little cycle that has been playing out since markets started. 

In our own market, this cycle allows us to generate cost-free-ness, again and again, while banking on infinity. 

 

 

 

 

Resisting the Devil’s Lure

The lure is tremendous. 

It’s flashy. 

It’s in the limelight. 

It’s happening. 

It wants to take you for a ride. 

It’s called Crypto.

There’s talk about “it’s the internet of the future”. There’s talk about how there’ll be no governments and how people will rule over their own currency. Enough to sweep one away. 

However, cryptos go against the grain of everything a steady long-term investor stands for. 

Origin is unknown. 

Banks won’t store. 

Governments rejecting.

Legit?

Do you know the answer?

Main exchange went bust in 2014. Got hacked. 

Terrorist and launderers have found in them a smooth haven. 

How is one to understand Blockchain?

X number of people agreeing that the sky is purple – does that make the sky purple?

What about all the cousins?

There are many cryptos. 

There’s one springing up every few weeks.

Which ones are going to be around in 10 or maybe 20 years?

Yes, long-term investors think …

… long-term. 

Cryptos are making people taste fast bucks. 

Fast bucks made in a few days can spell disaster…

…because this is a trajectory that makes one want to bet the farm at the peak. 

Crypto players are being set up for something big. 

The amount of ammunition prevailing is enough to bludgeon lots. 

Pigs will get slaughtered. Always happens. Very few people in the world know how to trade. Let alone knowing how to trade, very few can even define what a trade is. 

Cryptos are a trade. Period.

That too, if one wants to trade cryptos.

Why wouldn’t one want to trade cryptos?

For starters, very high beta. Not many traders are comfortable with high betas. 

Stepping into the crypto world means stepping out of one’s area of expertise initially. 

Why would one want to step out of one’s zone? Circle of competence means a lot to successful traders. 

Diversification?

Have crypto on your plate, and the sheer hullabaloo will disturb your other trading. The one you’ve taken so long to build up. Do you want that?

No. I don’t. I’m happy in my circle of competence.

I don’t want the disturbance. 

I don’t want the extremely high betas. 

I don’t want to get slaughtered. 

I want origin. 

I want legit. 

I don’t want bust exchanges. 

I don’t want to make my computer a target. 

I don’t want to be doing what terrorists and launderers are doing.

I don’t buy the mining story. 

If the sky is blue, I want to have the freedom to call it blue, even if a billion people are calling it purple.

My common sense says no. 

Therefore, my exposure to cryptos is nil. 

I resist the devil’s lure.