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. 

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Adding No-Action to your Repertoire

Action with positive outcome vs…

… no action vs…

…action with negative outcome…

…hmmmm.

Sometimes we become oblivious to actions with negative outcomes.

Society preaches to be active.

We listen.

We feel that doing something means a step forward.

Well, it ain’t necessarily so.

Many times, and especially in the markets, it actually pays to do nothing.

The most successful investors in the world will tell you, that the biggest money is made while sitting. They’ll also tell you, that almost no one has learnt how to sit.

They’re right.

Meanwhile, I’m telling you, right here and right now, that you can sit comfortably upon your investment without jumping only if you’ve bought with margin of safety. Think about it.

Also, the most successful traders in the world will tell you that the number one action that saves money in the markets is no action. Yeah, when markets move sideways, which is about 60%+ of the time, trades tend to get stopped out both ways, and the trader loses money repeatedly. At such times, it’s better not to trade.

What’s vital here?

Recognition.

Recognize that it’s a time for no action.

Then, do something else.

For this to be practical, make trading and investing your bonus activities.

Meaning, that if your bread and butter depends upon another mainstream activity, you can easily switch off from trading and investing for a while, at will, and without any negative impact upon your basics.

Also, you need to be versatile enough to have fall-back activities lined up, which switch on where trading and / or investing switch off. These need to take over then, and keep the mind occupied.

The danger of not going into no-action mode is the continuous committing of actions with negative outcomes.

That’s precisely where we don’t want to be.

 

 

 

 

 

 

 

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.