Bookability

Booking?

Understandable. 

Don’t book your basics though.

What are these basics?

Stuff you’re convinced about.

We’re long beyond due diligence here.

These underlyings are running. These are your right calls. 

They are not to be booked – as long as your conviction persists.

Any price?

Hmmm – this question brings in the concept of “Bookability”.

Save the booking angle here – for now. 

We’ll just try and answer above question about price. 

Sell everything else, as in any low-conviction holdings,…

…bit by bit,…

as markets tread higher and higher. 

Ultimately, it’ll all be gone. 

You’ll have done very well, and will have made good profits. 

You’re also left with your high-conviction holdings. 

As a bull market persists, these will start quoting at…

…ridiculous prices.

Is something a hold at…

…any price?

If you wish to be holding a multi-multi-bagger, well, then, yes, with a caveat.

When you can’t hold your trigger-fingers any longer, take your principal off the table. 

There.

Happy?

Now, what’s on the table for you, are high-conviction holdings, with principal off the table – aha – so these holding are free of cost for you.

When these high-conviction holdings are free of cost for you, the urge to sell can only persist because of two things. 

You could need the money. 

Fine.

Or,…

…because of an unfounded urge to book, as in “Score!”… .

Not fine. 

Tell your urge to sell that you want to make much, much more, by allowing an underlying to grow to 100x, for example. 

Urge to sell will subside.

What’s causing such urge?

Fear of a correction. 

When you’re holding free stuff, fear of a correction is unfounded. 

This needs to be instilled into our DNA.

With that, we’re done already!