Saturation

I don’t wish to add to my repertoire.

It has reached some kind of saturation. 

There’s no limit to how far I can go within my repertoire.

However, it is not comfortable with strategy addition. 

Fine. 

Did you just have this dialogue?

With yourself?

It’s good you did. 

While you start out in a field, you’re developing it. 

There needs to come a stage, in a while, where you have exactly identified, that you’re developing this, this and this further. Nothing else. 

Once you know what the exact game is, all your focus is required to take it to the nth level. What that n is going to be is up to you, again. 

Bottomline is, after a point, know your game. 

This is the game. 

This is what you are scaling up. 

That, that, that and that you are discarding, or have discarded. 

You need to reach this point within a reasonable time-frame. 

Then comes the next step. 

Pray, what might that be?

Automation. 

Before embarking upon scaling up, that what remains in your saturated repertoire – automate it. 

Staff. 

Technology. 

What have you.

Use any means for automation. 

Anything that’s legit, and which works. 

Use it. 

Standing instruction. 

Alarm. 

Alert.

Whatever. 

Automation is a huge blessing if used properly and after having tied up all the loose ends. 

If implemented in a hurry with sieve-like loopholes, it can even take you to the cleaner’s.

Implement automation in a justified and sure-shot fashion. 

Do you know what’s going to happen now?

You have created a situation, where scaling up means just punching in an additional 0 in the right corner, before the decimal point. 

Wow.

After a while, the complete field will be on auto. 

Why?

If you’re wise, you won’t scale up beyond your sweet-spot. 

Why?

Because obnoxious scales come with obnoxious problems.

What’s obnoxious?

Anything beyond your sweet-spot…

…is obnoxious. 

What is your sweet-spot?

That only you can discover. 

So what now is the exact status of the field?

Your repertoire in the field has reached complete saturation regarding strategy and scale. It is on full auto. It is adding to your well-being without you batting an eye-lid. 

Congratulations. 

However, where does that leave you?

Is that even a question?

There’s so much to do in the world. 

Discover a new field. 

Develop your new repertoire in this field. 

Take it to strategy saturation. Automate it. Scale it up. Take it to the sweet-spot. Wean off the scaling up. Move on. 

What a life it’s going to be for you!

When it’s not wrong to be wealthy 

Wrong statement? Or question? Or whatever the topic is supposed to be? 

No. 

Right question. 

When is your being wealthy not wrong for the scheme of things?

When you put your wealth to good use…

…when you take the world a few steps forward,… 

… then. 

When is your being wealthy useless for the scheme of things? 

When you sit on your behind… 

… and do nothing constructive with your wealth,… 

… that’s when.

That’s also when your wealth is gonna be a one-off. 

Just you watch. 

Nature’s not put you where you are… 

… FOR NOTHING… 

…! 

Make it count. 

Now. 

Heard of regret? 

A meaningless life fills one with regret at the time of death. 

Or so they say. 

That would be a pathetic state of mind to carry forward, wouldn’t it? 

So different from a feeling of content about having lead a meaningful life and having brought happiness to many, huh?  

Think about it. 

Wealth should not lead to mental degradation. 

On the contrary, it should catalyze and nurture comprehensive growth all around your nucleic personality.

Yeah, give off your wealth, as does a tree laden with fruit.

Wealth-Generators often go Contrarian

You knew that too, right? 

Sure. 

Going contrarian is a buzz-phrase. 

We hear it again and again…

… till we begin to start thinking… 

… that we know what it means. 

Well, try going contrarian. 

Yeah, try actually doing it. 

You’ll see what I mean. 

It’s real hard. 

Going against the crowd takes all the strength you might have… 

… and then some. 

Most humans aren’t able to go contrarian. 

Most humans aren’t wealthy. 

When there’s blood on the streets, there’s no telling how much more there will be. 

Under such conditions, the contrarian investor lets go of his or her hard-earned money into an investment, knowing perfectly well that the Street might even value the investment tomorrow at a huge discount to today’s price.

That’s ok too, says he or she.

Why?

Because homework’s been done.

Underlying is strong.

Debt-free.

Management is stellar.

Balance-sheet is robust.

Projections are paramount.

That the world is pricing the investment wrongly is a problem with its vision.

Underlying is not going under. With above credentials, this alone matters.

Times change. Vision of the majority changes. Investor makes a killing. Cashes out some, principal and what have you. Leaves lots of free-standing shares… forever… or till parameters change.

Wealth-generators repeat this behaviour-pattern many times in their lives.

They’re not afraid of going against the grain.

They know otherwise.

Also, the money they use has been freed up.

Its being out of action for a long time is not going to change their lives even a bit.

They will have the last laugh.

Wealth is the reward of going contrarian. 

Going for the Multiple 

Relax. 

We’re not going for the jugular. 

Or are we? 

The jugular has the most copious flow. 

Maybe we are then… 

… going for the jugular. 

However, there’s no stabbing happening. 

We do everything from the inside of our comfort-zone.

We act with harmony. 

Balance. 

Focus. 

Intelligence. 

Common-sense. 

We try and be non-violent about it. 

What are we doing? 

We’re looking to create wealth. 

What makes us look? 

Security. Our basic income secures us. 

Boredom. Adding to our basic income has become boring. 

Overflow. As basic income starts to overflow, it needs a long-term avenue in which it doesn’t demand our constant attention. 

Fine. 

What’s the best way… 

… to go about it?

Where there’s honey, there are bees. 

Finance-people find you. You have money. They have investments. For finance-people, you are bread and butter. 

So, you sit. 

You wait. 

You let them come. 

You’ve got discriminatory-ability. 

You sift. 99% of what comes goes into the bin. 

You like 1%. 

You invest in that 1%.

How much? 

Whatever you pre-define as your per-annum outflow into wealth-creation. 

Only that much. 

What then? 

What’s the bottom-line? 

What’s your holding strategy? 

Nothing. 

You sit. 

The biggest money is made…

…while sitting.”

You’re not even looking at your long-term investment more than once a month. 

You’re not interested in daily quotes.

The daily quote can say zero. You don’t care. You know that you are in the process of creating wealth, and that it’s going to take long, and within that period you don’t care if the world thinks your holding is zero, because you know it isn’t. 

Why? 

Due-diligence. 

Ability to think differently. 

Ability to see wealth in its nascent stage, and to recognize it. 

You have these things. 

They didn’t come for free. 

You took some solid hits to earn them. 

Yeah, you have what it takes, and that’s why… 

… you’re going for the multiple. 

What to do with a racing mind? 

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. 

Nath on Equity : have stuff – will talk

Behind Equity, there’s 41). human capital. 

It’s human capital that keeps 42). adjusting equity for inflation.

43). No other asset-class quotes on an inflation-adjusted basis. 

That’s good news for you, because 44). equity takes care of the number one wealth-eater (inflation) for you. 

All world equity ever quoted, whether currently existing or not, has 45). returned 6% per annum compounded, adjusted for inflation. 

46). All equity ever quoted that still exists has yielded 11% per annum compounded, adjusted for inflation.

Equity selected with good due diligence, common-sense and adherence to basic rules listed here and in previous articles is 47). well-capable of yielding 15%+ per annum compounded, adjusted for inflation. 

However, equity is 48). a battle of nerves, at times. 

This asset-class is 49). more about creating long-term wealth. 

It can be used, though, to 50). generate income through trading. 

51). Trading, however, is burdened with more taxation, commission-generation and sheer tension. 

Trading equity 52). eats up your day. 

Investing in equity 53). gives you enough room to pursue many other activities during your day. 

Trading strategies are 54). diametrically opposite to investing strategies. 

55). It takes market-players the longest time to digest and fully comprehend 54).

For long-term players, 56). up-side is unlimited. This is a vital fact. 

Also, 57). downside is limited to input. Factor in good DD, and that very probably won’t even go half-way. 

58). Thus, 56). and 57). make for a very lucrative reward : risk ratio. 

Equity needs courage, to 59). enter when there’s blood on the streets. 

It also needs detachment, to 60). either exit when required for monetary reasons, or when everyone else is getting ultra-greedy and bidding the underlying up no-end. 

Monotony

Plan in motion? 

Let it play. 

Sure, monotonous. 

Monotony bores you, right? 

Boring monotony yielding acceptable results is a good outcome. Don’t spoil its party. 

Divert your attention. 

Try a stunt. 

Risk a little. 

Maybe one out of your ten stunts works out. 

Develop this one further. 

Still working. 

Scale it up slowly. 

Working. 

Auto-pilot. 

Monotony. 

Results still good. 

Stop looking. 

Let it play. 

Look elsewhere. 

Do something new with yourself. 

Soon, it’ll be time to go. 

Meanwhile, build a legacy to leave behind, in your memory, one that benefits many.