Banking on Infinity

In a market…

…that promises decent…

…long-term growth, …

… we are able to…

…bank on infinity.

In such a market, the concept of cost-free-ness proves successful …

… in that it is able to generate multibagger outcomes, …

… over the very long-term. 

In such a market, the power of compounding makes itself felt in its full glory.

Also, in such a market, fear goes out the window for the clued-in player, since one is able to…

…bank on infinity.

We are fortunate to be playing in one such market. 

Yes, one such market is our very own. 

Having said that, India has idiosyncrasies, as does every market, and the Indian angle on these is definitely unique. 

The main one is that we’re an emotional lot. 

That is automatically then reflected in our market too. 

High beta. 

Meaning, in normal English, that there will abound huge entry opportunities, and huge exit opportunities, on a regular basis. 

And that, if I may underline, is worth Gold for us in the pursuit of cost-free-ness.

In other words, we will be able to create cost-free-ness year upon year, month upon month, and, at times, like now…

…week upon week.

Is that not…

…wonderful!

Once cost-free-ness is created, we transfer it out of sight, and, banking on infinity, we can just sheer forget about it, focusing our attention on the next round of cost-free-ness-creation.

We can do that because we are in the right type of market for this particular model. 

In fact, this model has been conceptualised for exactly…

…this market. 

Maybe someone has done it before me. Perhaps a lot of people. More successful. Big players. Famous. And that’s huge. I’m happy for them.

However, that’s not the point. 

We’re not in this for the glory of who got there first.

We’re in this for generating long-term wealth by using the concept to the hilt, because it’s working, and promises to do so till into the far-foreseeable future.

Before I sign off for now, there’s one more thing to remember. 

When we bank on infinity, we most hold before our eyes, that the translation of long-term growth into long-term wealth…

…is not linear.

Growth is perceived in spurts of optimism spilling into over-optimism, and these become our exit opportunities, where we exit with our principals, and are left with stacks of cost-free-ness. 

During spurts of pessimism, spilling into sheer depression, prices dip low enough, such that we, once again, get representable entries. 

It’s a neat little cycle that has been playing out since markets started. 

In our own market, this cycle allows us to generate cost-free-ness, again and again, while banking on infinity. 

 

 

 

 

Happy Ninth Birthday, Magic Bull!

Hey,
 
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.
 
Why?
 
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!
 
🙂 🙂