When Do You Bet The Farm? 

Bread and butter. 

Safety-…

…-net.

Basics.

You gather yourself to carve out a comfortable life for your family. 

Build-up. 

Debt-free-ness. 

Yeah, zero-debt. 

Feel the freedom. 

Breathe. 

No bondage. 

No tension. 

You have to feel it. 

Surplus. 

First, small surplus. 

Then, big surplus. 

You’ve made sure that nobody ever will remind you to pay your bills. 

Great! Well done. Now… 

… keeping all basics intact… 

… you play with small surplus. 

Risk. Calculated. Digestible. 

Multiplier. 

Loss. Cut small. 

Win. Allowed to grow. 

Small surplus starts giving regular fruit. 

You put back the principal into your family’s basic corpus. 

Repeat. 

Many of your small surpluses have grown into fruit-bearing trees. 

Your farm is bursting with grain and fruit. 

Have you taken any big, indigestible risks? 

No. 

Have you ever put your family basics at risk? 

No. 

Have you ever thought about betting the farm? 

NO. 

Will you ever bet the farm, no matter how big the lure? 

NEVER. 

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Who gets 5 Stars for Fund Movement?

Movement?

Or lack of movement?

What will you have?

Who discusses such a topic?

Is this lame?

Is it that we have nothing better to do?

NO.

Fund movement is a central topic.

Funds are blood.

You need to be master of their movement. Winners are.

What’s there to discuss?

Aren’t things obvious?

Well, no.

To most people, things wrt movement of funds are everything else but obvious.

No pipelines are created.

No sheds for storage.

No safety mode in the firing gun.

Gun fires as soon as the load is available.

You see, all this leads to losing positions.

How?

One should not fire as soon as one can load.

One should fire when one sees a ripe target for the taking.

What should one do till then?

Store the load. Elsewhere. Give it some light work to do. Put it in a position that it can make its way easily back to you as soon as you call it in.

When do you call it in?

When you see the big fat target.

Again, isn’t all this obvious?

Again, no, to most people, no, no, no.

Most people are busy getting sophisticated.

They don’t focus on the basics.

Basics win you the game.

Sophistication might deceive you into the false belief that you are winning or are one up, but because you’ve forgotten to focus on the basics, chances are high that you’ll end up losing.

So here’s what one needs to do.

No gun in the house.

No load in the house.

Big fat target. Identify.

Go to load. Load = funds.

Direct load to gun. This is the movement process. It happens online. Funds are directed to a website.

Fire. Pull the trigger on the concerned website. Yeah, gun’s in cyber-space.

Wait for next opportunity.

Repeat.

So on and so forth.

This way, due to sharply controlled fund movement, one creates positions with high potential to win.

Come on, get your basics in order. Leave sophistication to the losers.

🙂

What to do in the Age of Shocks?

Wait for a shock.

That’s it.

Then go in… a bit.

Sound simple?

Ain’t.

Why?

Firstly, patience.

Who has patience, today?

Few.

Secondly, psychology.

Shock brings pessimism.

You don’t want to go in, not even a bit.

That is the whole thing.

Punchline. Understand it, and you’ve won already.

Thirdly, funds.

Who has funds, when the shock arrives?

Few.

Why?

Barely anyone knows how to SIT on funds.

I didn’t either.

Self-taught.

Through mistakes and pain.

By putting money on the line… losing it.

Took eleven years.

Now I know.

So don’t tell me that one is only born with the ability to sit.

Don’t waste your funds. Save them. They are your soldiers.

Fourthly, energy reserves.

Who has energy reserves when the shock arrives?

Few.

Why?

We’re too busy doing this doing that, always, forever. We don’t know how to conserve energy and build up reserves. Those who do then use their reserves to carry forward their strategies upon the arrival of a shock.

Fifthly, focus.

The hallmark of a big winner is focus.

Who has focus?

Few.

We’re too busy diversifying. It’s safer. Investing in the wake of shocks requires pinpointed focus.

Sixthly, courage.

Who has courage?

Few.

Why?

We’ve been taught to avoid, and move on. Life’s too full of BS that needs to be avoided. However, coming out during shocks needs courage. Face the enemy, and fight.

Seventhly, and perhaps this should have been on the top of the list, common-sense.

Who has common-sense?

Almost no one.

Why?

We’re too busy being complicated and sophisticated. We want to portray falsehood. We miss the forest for the trees. However, shocks are tackled with common-sense. Simplicity in thinking is paramount. The simplest ideas making the most sense are also the most successful ones.

Eighthly, long-term vision.

Who has vision?

Handful of people.

Why?

We’re too near-sighted. We want instant gratification. However, a shock presents excellent ground to root yourself in for the long-term. Understand this, and you’ll have understood a lot.

I could go on.

That’s quite enough though.

Above are eight points to think about,  to be seen as eight weapons that need sharpening, to come out fighting in the age of shocks.

Be patient, optimistic, fund-heavy, energy-heavy, focused and brave. Use your common-sense. Have long-term vision. BASICS.

Wishing you successful investing, in an age riddled with shocks.

🙂

Patience and Nerves Anyone?

As someone I look up to put it recently – “It’s a game of patience and nerves!”

What is?

The stock-market. 

For whom?

The long-term investor. 

Do you have any?

What?

Patience, or nerves, or both?

You do?

Well, then you’ll do well in the markets, over the long-term. 

We look for complication. Meanwhile, we forget the basics. 

These are basics. 

If you’re not patient, you’ll for example jump into a stock at the wrong time, or you’ll jump out of it too early, or what have you. 

If you don’t have patience, well, develop it. 

If you can’t, do something else instead. Trade. Don’t long-term-invest then. 

If you cannot develop patience, you are not cut out to be a long-term holder. 

One method to cause the tree of patience to grow in you is to create the correct environment. 

Just don’t do anything that will make you jump. 

Invest your sur-sur-plus, money that is then pickled away, money that you won’t miss, yearn for or require over the very long-term. 

Go in with margin of safety. 

Stay in a stock you’ve singled out and entered until there’s a glaring reason to exit. Try to exit upon a high. This is the market. Highs are its nature. So are lows. That means that highs come. Wait for them to come, to exit from anything you need to exit from. 

Nervers, well, they come into play if you’ve not invested with margin of safety. 

I do remember two instances though, where everyone’s nerves were tested. October 2008, and March 2009. At these times, stocks sold for a song. Good ones and bad ones alike. Fear did the rounds, extreme fear. That’s what fear does. It creates once-in-a-lifetime opportunities. Take them. Maintain a clear head. Your nerves of steel will do that for you. Create an environment for your nerves to become strong. Or, perhaps expressed another way, create an environment where any weakness in your nerves is not required to show itself, and gets subdued into extinction. 

How?

Again, just go in with your sur-sur-plus. You’re not going to miss this money even if the sky is falling upon your head. And you’ve gone in with margin of safety. Your nerves will stay intact. 

Ensure your basics. Allow them to shine. 

The rest will take care of itself. 

Good investing. 🙂

Things To Hold On To

There are some up days…

…and there are some down days. 

Could be because of anything. 

On down days you need to hold on to something(s). 

These provide anchor. 

You wedge yourself into something, and are not swept away. 

There’s right diet. Leads to good health. You make sure your diet doesn’t stray on a down day. It is likely to if you don’t watch out for its deviation attempt. 

Exercise. Get moving. Alone the hormones secreted during exercise should make you feel better. 

If your down day is not because of professional issues, get professional (baby)! Meaning, use your profession as an anchor. Dive into it. Deeply. Forget about time. 

Look after the well-being of someone you care about. 

Pursue something extra-curricular. Again, dive into it. 

Travel, if you can. 

You can fill in the blanks. 

I’ve set up a very basic list. 

We’re very basic here. 

We don’t believe in sophistication. 

We break life down to basics. 

We keep things simple. 

So, what does the anchor do?

Yes, it stops you from being swept away. Your anchor gives you stability and solidity. 

Then, your anchor consumes you. You lose track of time. 

What was time, – oh ya – a healer. As time passes, you forget the issue, or the issue dissolves, or dilutes. 

You wake up on another day, refreshed, and join the battle where you left off. Issue seems smaller. Your forces are replenished. You fight. You win. 

Never forget your anchors. Have them ready. Anytime. Any place.