Just turned nine!
We’ve seen stuff…
…in these nine years.
What is our endeavour?
We’re in the business of creating wealth.
What is wealth?
It is something that multiplies over a period of time, …
…, perhaps over a long period of time.
Wealth affords one things – comfort, medicare, education, luxury, and what have you. So does surplus income, but wealth has the capacity to do this whilst keeping its principle value intact, taking care of our need, and still retaining a large surplus.
On the grass-root level, wealth is an idea.
Look at it as a multiplication matrix.
When we’re looking at money through the spectacles of this multiplication matrix, we’re looking to create wealth.
When we’re looking at money without using such spectacle framework, well, then we’re looking at sheer liquidity, income, surplus income / funds etc.
In this form, funds are spent, or put into an instrument which returns less than inflation. Funds are burnt over time, and over the long-term, their buying power takes a huge hit.
Wealth, on the other hand, returns way beyond inflation. Over the very long-term, returns can even be triple-digit per annum (not using the word “compounded” yet). Double-digit returns, per annum compounded (ya, using it now), are normal. 26% per annum compounded gives a 1000%+ return over 10 years (triple-digit per year)!
Wealth kills inflation, and then some, actually, and then lots!
The assimilation of wealth doesn’t necessarily follow a linear mathematics.
It is better to not look at this mathematics on a day to day basis.
Wealth is best created out of sight, out of mind.
During the journey to wealth, one needs conviction in one’s rock-solid research.
Observing day to day trajectory deviation makes one lose such conviction.
Worst-case scenario can be to interrupt the wealth-creation process, or to stop it altogether.
One encounters many colleagues on the road towards wealth-creation.
Sure, everyone wants in.
Who ends up creating wealth?
In other words, what’s the wealth-creation mind-set?
Our basics have been put in place, by us, laboriously, in the beginning.
As in, we have a basic income going. Our needs for the next couple of years are taken care of.
We’ve been pickling any incoming surplus away.
We don’t need to draw on it for a while, for reasons explained above.
Our research is rock-solid.
Our small entry quantum strategy has been fine-tuned thoroughly.
However, we’ll keep at it, tuning further as per requirement.
We believe in ourselves, our research and our strategy.
WE are going to end up creating wealth.
Holding on to wealth and seeing it through to its logical conclusion will be the next challange.
Great year ahead, Magic Bull!