Hey.

I am not ashamed…

…of being fully invested…

…in equity.

Yeah. That’s the status.

Invested. Fully. In equity.

Dangerous?

Sure.

So is driving.

Flying.

Cycling.

Living.

It’s about first digesting the dangers mentally, and then acting.

So, what are the dangers?

Loss.

Hmmm. Notional loss at best. So’s that of one’s house, when its value goes down in price.

Notional.

Since requirement is a very small fraction of corpus, it can be pulled from corpus, when it surfaces.

What will be pulled?

Chunk or the whole of a loser.

Loser’s liquidation will fund expenses.

Any accrued income will go into creating future winners.

Good money chases good outcomes.

Bad money finances expenses.

Nothing stays loose in the bank.

Fixed deposits are passé composé. Baby.

A). Our currency depreciates by the day, geo-politically.

B). Inflation eats into FDs daily, as sure as a shot.

C). Why be subject to this double whammy?

Is being down 50%, or 70%, or 90% in stocks — even the overhang of such a possibility — a better outcome, you ask.

Well, it can happen, I’ll give you that.

In fact, every stock quoted will be down 50%+ once every 5-7 years, on average.

With such scenario, how can I sleep at night, you ask.

It’s ok. I sleep well.

You see, I’ve not pickled the funds away blindly.

Quality companies with shareholder-friendly managements. Impeccable balance-sheets. Minimal debt. Value. Growth at reasonable price. Higher growth at representable price. Some punts, yes, with very high growth at unreasonable price, but that’s what one pays for very high growth. This will yield results. Over time. That’s why I sleep…

…well.

What’s the max I can lose?

100%.

Correct. For max loss to happen, planet needs to be going down. In that scenario, stocks won’t be our worry.

Reasonable number?

A 50-75% max notional loss is always on the cards, temporarily, with the world on tenterhooks all the time.

Temporarily is the key word.

Growth markets swallow hiccups–fast. And, I’m invested 100% in a growth market. With hiccups. (Where are there no hiccups?) Soon to be a high-growth market. Watch.

What’s the max profit I can make, let’s try and answer that.

Do we even have a number here?

I don’t.