Tag Archives: #Flowers

Paying the Price

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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.

Who’s Decoupling?

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We are.

No country.

No market.

No conglomerate.

No anything.

We, as retail investors, are choosing to decouple.

Meaning?

Crash chorus?

Yeah, so?

Louder?

Yes.

Warren Buffett warning?

Yes.

Crash Crash Crash everywhere to be heard?

Yes.

Still we implement our implementables.

Meaning, unperturbed?

Yes.

Why? I mean how? What are you thinking?

Crashes come, crashes go. Look at our market’s graph since inception. Note anything?

Steady growth, decade upon decade. I can see Asian, Dotcom, Housing, CoViD, what have you. Rise, despite. But they say this one’s going to be mother of all.

Mother of this, father of that. Doesn’t affect our strategy.

How?

First up, remember, that speeds are now super. Everything’s happening…

…FAST.

So, if there’s going to be a -90, it’s going to happen…how?

Fast.

Right.

We’ll, as in our own growth market, will V-shape recover…how?

Fast.

Does it affect a multi-decade strategy?

No.

Correct. We proceed with our stuff, irrespective.

And what’s the stuff?

Uno : get fully invested.

Due : Weed upon expense.

Weed weed weed. That’s our chorus. Not crash crash crash.

Tre : Pluck flowers if no weed, upon expense.

Quattro : Groom our superflowers.

Period.

Don’t care about crash, panic, fear, or any such hallucination. We do our job, enjoy our life, and move on to the next challenge, when this one’s on auto.

And that would be…

…Yes?

That would be decoupling, right?

Decoupling is a state of being. You feel it. If you can feel it, you are decoupled.

How does one know?

When the chorus doesn’t affect you, and you go about your stuff joyfully.

It’s as simple as that.

Expanding MindReach

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Hey.

This is recent territory for Magic Bull.

Imagine a prohibitive mindset.

When exposed to expansion, ‘prohibito’ is satisfied with less.

In our averaging down avatar, we used to create cost-free-ness at small multiples.

Not bad…

…at all.

As of a few months ago, Magic Bull moved from the ‘not bad’ category.

Where to?

Don’t know yet. For now, let’s call it ‘limitless’.

So, what are we doing differently, now?

After establishing a one lot base in a stock, we are now – only – averaging upwards – upon – deepening – conviction.

We have stopped creating small pockets of cost-free-ness.

Small is not our goal anymore.

We are now – completely and only – aiming for big (big) multiples.

We are also buying into these multiples as they multiply.

If they don’t, we don’t either – buy – more.

Over time, let’s say 25 years, what’s going to happen?

Many one-/ few-lotters will languish, as weeds. They will be weeded out, eventually, as and when requirement arises.

Some multibaggers will develop, and they will be bought into, upon deepening conviction, more than a few times. After a while, these will stagnate, and will settle at a steady base, well above buying average. We’re then sitting on perhaps 2x to 10x, and can hold comfortably – long way above weed-territory – this is flower-valley – flowers get expended too, though – need-based – when there are no more weeds to find.

Very few will become BIG. SuperFlowers. 20x – 50x – 100x – 500x … … 1000x. Talking expanded mind-reach, or what? Time can well take conception to reality, in a growth market that we are, slated to function at high-growth after exceeding critical mass, which I do believe has been exceeded. Thus, in 25 years, we wish to be only holding…

…SuperFlowers.

Our mind’s reach is at maximum.

It has broken…

…all shackles.

We are not…

…afraid.

Magic Bull’s limiting and prohibitive earlier avatar has expanded into infinity.

It’s the kind of thinking where the word ‘limit’ does not exist.

Magic Bull is now an ensemble.

Like-minded worldwide mindsets who think beyond limits.

That’s why, Magic Bull is a…

…we.

SuperFlowers, anyone?

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How do we get to…

…superflowers?

Imagine a garden.

It’s got grass.

Grass is a weed (?).

Garden’s got other zero-benefit (?) weeds.

In general, it’s got weeds.

And, some flowers.

We don’t want the weeds.

We want the flowers.

Weeding out has activation barriers built in.

Toolkit – buy.

Or – gardener – hire.

Spend energy doing the job.

Take that extra time out of your normal routine.

A million excuses, each one seeming valid.

As mentioned earlier, weeding comes with baggage.

Overcome.

Weed.

Out.

What remains?

Flowers.

Right.

We’re still not at superflowers.

Expenditure comes up. All the time. Does it not?

If there’s a weed, sell the weed and use the proceeds to meet the expenditure.

No weed?

Well done.

Sell the least performing flower to meet the expenditure.

Done?

Income comes in?

Put it into a new opportunity. Weed or no weed status activates after some years, you decide how many years.

So, seeing only flowers now?

Wonderful.

Keep pushing. Pushing is the secret ingredient.

Any spend whatsoever, now gets met with a flower expended, or at least some part of that flower.

After some years, have a look.

What remains are your best performers.

Hope you’ve been adding to these.

Decade or so later, upholding this chronology, you are only left with…

…superflowers.

Congratulations.