Mass hypnosis…

…sweeps psychology…

…into a space where common sense…

…goes out of the window.

Such is the power of a pseudo ideology vis-à-vis a public that is now constantly in fight or flight mode.

Since CoViD.

Vaccinations.

Constant pursuit of growth at any cost.

Next story.

Next story.

Next story.

Let’s spin them a yarn.

Not any yarn.

A yarn that looks very realistic. Cut to ten years ahead, and the yarn probably alters current reality to a yet uncertain level. However…

…it’s not true NOW, in the shape it’s being spun and sold.

Masses are lapping it up. No need for implementation proof, no need for some years of field testing, perhaps at least five, antibiotics take ten in the actual world, no need for anything, no discounting for blunders, just spin it and we’ll lap it up. Ok.

Please do so. We, on the other hand, shall take huge advantage of your mass gullibility, masses. That’s why we remain liquid, for exactly these mass hypnoses.

Yes, we are buyers for Indian IT.

We’ll be buying till the bottom and slightly beyond.

We are fearless. Over more than two decades, we have created conditions for ourselves, mentally, in our environments, financially, which have thrown fear out of the equation.

Our strategy is one that benefits from ridiculous crowd behaviour. Again and again, we’ve gone against crowds, and emerged with multiples, financially free to take our principals out and deploy these into the next mania, panic, or whatever have you.

And so shall it be this time.

We are liquid enough to keep buying Indian IT, with small entry quanta, right to the mid single digit PE levels. Yes, we have that conviction.

Why?

First up, track record. 40 years of successful navigation through disruption. This disruption is different you say? Replace billable hours with a 1000 times more outcomes coupled with handholding, and revenue streams make billable hours look like dust particles. This one para just breaks the back of the story being sold. Do I think it’s possible? Yes. ‘Necessity is the mother of invention’, and the companies we buy have track records to prove that they are capable of emerging in the avatar that is required.

Then, poise. Zero or quasi zero long term debt. Massive free cash-flow per annum on the balance sheets, i.e., the conditions and means to R&D one’s way through. And, why is the public discounting the last five years that have been laden with exactly such R&D? Why is the public further discounting the level-headed input of Indian IT into AI? Owned billions put in with equilibrium. Indian approach. Borrowed trillions thrown in without looking left and right. Western approach. BIG DIFFERENCE.

Then there’s Buffettology. Tried and tested. Down the ages. Value. Deep discounts. Quality. BUY. HOLD. Beats most growth pursuits without having to look. Time and effort requiring growth pursuits are another story, and those pursuing them also become slaves, as in they don’t own their time. WE DO. WE OWN OUR TIME. HUGE WIN.

We are independent, and this current panic shall enhance our level of independence financially in the medium term, which is when we will pull out our current principals going in now, leaving part of our multiples in the market for further compounding.

Pulled out principals will then be deployed into the next panic.

One can already feel it brewing.

No Pharma required anymore. AI and implants will cure everything.

No Auto sector required anymore, it’s merged with the AI sector, or, better still, Auto is now AI. Forget Auto. Invest in AI. You automatically get Auto. Aviation. Tourism. Banking. Everything.

Etc.

New bottles. One after another.

Same old wine.

This time is always different. Ok, keep it rolling.

We’ll just keep doing our common sense thing each time, which is deploying, making a multiple, and then pulling our principal out.

And repeat.