Tag Archives: #numbers

Magnets

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Numbers…

…can behave like magnets.

Most of the time, and for most people, however, they don’t.

Yet, I know they do.

How?

From live example.

Haven’t figured out the dynamics (yet).

For example, when certain patterns or combinations prevail, I find my head turning towards them.

It’s happened too many times for it to be a healthy coincidence.

So…

…first let’s acknowledge, that this is a phenomenon.

Secondly, l’m acknowledging current lack of understanding of the mechanism.

Thirdly, yes, I acknowledge that I don’t care how it works. Bottomline is that it works.

Do you necessarily know the physics that propels a car? Yet, you drive or travel in one.

Have you mastered the biochemistry of a body-cell? Yet you live, perhaps thrive.

Looking beyond the ‘first tell me how it works’ attitude, we are far more interested in harnessing the power of the phenomenon.

Number Patterns.

Chart patterns.

Some indicate entries. Others exits. Yet others status quo.

Single numbers.

Combinations.

Some remind us of events.

Loved ones.

Warnings.

Messges.

Figure out what’s happening around you.

The universe is speaking to us with this tool.

Do we have the capacity to listen?

Understand?

Act?

No?

Why not? Rise and grab the tool and its benefits.

Yes?

Wonderful!

🙂

Whetting

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What does it take…

…to convince my mind…

…that something’s a very long-term hold?

What am I looking for?

Longevity. Actually, perceived longevity. Perceived in my mind. Mind matters. When the mind is shaken, one lets go. For something to be a long-term hold, the mind needs to be long-term convinced.

Lack of dependency. On water. On other natural resources. On CapEx. On real-estate.

Immunity to trend-change.

Adaptability to disruption. As much proximity to a state of anti-fragility as possible. Entry price and cost-free-ness will reinforce proximity to anti-fragility.

Diligent, share-holder friendly management with good track record, with repeated examples of wealth-creation through exploitation of multiple avenues available.

A product line that is more dependent on human capital than on machinery.

Copious, intelligent, reasonably priced human capital. With that we’ve knocked out inflation.

Very decent margin of safety at entry point. With that we’ve accounted for any remaining idiosyncrasies in capable managements and / or otherwise humane promoters.

Lack of debt. We’re ok with reasonable amounts borrowed at reasonable rates for day to day working capital, but not a big fan of long-term debt.

No smoke cloud. Talking about scams, frauds, bribes, court-cases and the like.

That’s ten things already.

I take these ten, sift through the Nifty 500, and get 43 underlyings, which, for me, satisfy these criteria.

That’s it.

I play with these.

That’s all the whetting I need.

You’re saying I didn’t mention numbers. Metrics. Ratios.

Numbers come and go. Basics remain. When the basics are right, numbers will be intact for long, and for a few quarters they won’t be. Those are re-entry opportunities.

Good basics create good numbers, repeatedly. We are making sure that we are only entering into good basics.

Now the ball’s in your court.

Create your criteria.

What works for you?

Sift through.

Narrow down.

What remains are your whetted stocks.

Start your game.

It’s a long one, so…

…wishing you stamina!

🙂

What to do with a racing mind? 

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Harness it. 

Or, it’ll get you. 

How? 

It won’t stop racing till it finds something of interest. 

Then, it’ll hook on… 

… without caring too much… 

… whether that something’s good or bad.

At that stage, you might not be able to control your mind. 

Control it when it’s controllable. 

Before it’s latched on. 

Before the flow has started. 

Define for yourself the area of flow. 

Actively make your mind connect. 

Regulate your flow. 

Enjoy the harnessed potential of your mind. 

Let’s observe a practical example in motion. 

I’ve actively latched on my mind, among other things, to the stock market. 

The market has many aspects.

I need to take into account most of these, if not all, while picking a stock. 

Sure. 

However, some aspects stand out for me. 

To these aspects I latch on my mind very thoroughly. 

I like it to get a feel for honesty. 

While I’m screening a stock, my racing mind either picks honesty or it doesn’t. 

If it hasn’t smelt and felt honesty after two days of studying the stock, I just let the stock go. 

Some are big on numbers. Some are big on charts. Sure, I look at both. Honesty delivers the final decision for me, though, as in, the crucial blow. 

Instead of resorting to all kinds of nonsense, the racing mind can be taught to become one’s greatest asset.