Being Cost-Free is like having 100% Margin-of-Safety

What allows us to sit?

It’s margin-of-safety.

When we buy without margin-of-safety, we are not able to sit for the long term.

Long-term investing fails for us if we don’t know how to sit.

Extrapolating this logic further, what would allow us to sit on high-quality holdings, like, forever, allowing for multibaggers to develop in our portfolio?

It’s cost-free-ness.

Being cost-free in a stock is equivalent to having 100% margin-of-safety on the holding.

Such a state of being allows us to freely sit on the holding, like, forever.

A range of other benefits open up for us, and about these we have spoken in detail earlier.

For example, we become fearless with regard to our cost-free holding. Then, we experience full freedom of focus on future play, while simultaneously forgetting that we even have this other cost-free holding that we own! Like I said, we’ve discussed all this thoroughly in previous pieces.

Bottom-line is, that we understand explicitly following extrapolation : Buying with margin-of-safety translates into sitting-ability for us, leading to creation of cost-free-ness upon appropriate appreciation, and such cost-free-ness in turn equates to 100% margin of safety in the held underlying, which then allows us to sit indefinitely on our high quality holding.

We’ve thus set the stage for holding many multibaggers in our ‘folio, by the time we reach retirement age.

🙂

This is Why Your Blockbuster Gain Story is going to Happen

You’re learning to sit. 

You buy with margin of safety. 

You buy in small quanta,…

…and that’s why you’re always liquid,…

…to avail any opportunity that arises. 

Yeah, there’s nothing impeding your liquidity…

…because you’ve kept yourself virus-free, i.e. debt-free. 

You only buy quality…

…that’s going to be around for a long, long while,…

…because you don’t sell for a long, long while. 

You don’t listen to what the grapevine is saying…

…because of the conviction and strength of your own research and opinion.

Yes, you regularly go against the crowd. 

You either buy into debt-free-ness, or into managable debt that spurts growth. 

Your input into the market doesn’t affect your daily life, leaving you tension-free to address your non-market world and thrive in it,…

…and that is why,…

…for all the above reasons,…

…your blockbuster gain story is going to happen,…

…and what’s more,…

…you are also enjoying the ride leading up to it.