Investing is like Driving in Traffic!

When others around you are driving carelessly, it helps to be more cautious. Similarly, in investing, if animal spirits are high and prices are being bided up and up, a sound investor needs to caution more and more.

There is Activity in Inactivity and Inactivity in Activity!

Real wealth is generated from holding rather than buying/selling. Time in the market is underrated, timing is overrated. Holding is as much an active decision, as is buying/selling. However, it is perceived to be inactive.

Activity in Inactivity: Behind the scenes, new ideas are being constantly vetted and pitted against existing ideas in the portfolio.

Inactivity in Activity: Best returns are generated by holding great investments over the long-term.

To Converge, One must Diverge!

Investing is primarily a decision-making job. To converge to a decision, one must sift through divergent data sets and information. More the divergence, better the convergence! In our investing approach, we try to think of as many dots as possible and then look to connect them to converge.

Evolution and Alpha

I strongly believe that as human beings our purpose is to evolve to our higher states of consciousness. My observation is that while everyone is at different stages of consciousness at any given stage of life, all of us share the same goal of evolution.

Accordingly, markets are nothing but a reflection of the collective state of consciousness of its various participants. Mr. Market can only become more efficient if the society, as a whole, becomes more conscious. That is comforting to me, as I believe while such an endeavor is noble, it is a far-reaching goal at the moment. Until that happens, the pendulum will continue to swing between greed and fear, keeping markets inefficient and ensuring enough alpha opportunities for willing investors.