Being Fundamentally Sound

It is possible for fundamentally sound sports teams to lose a few games here and there.  The ups and downs of normal course of events pretty much guarantee that.

However, fundamentally sound teams give themselves the best chance to win games.  They work relentlessly on their fundamentals, which allow them to minimize mistakes and to stay calm in difficult times.  To a casual observer, it may look like they tend to get luckier or be at the right place at the right time more than other teams, but in truth, it is just the law of large numbers working in their favor.  If you do the right things over and over again, good things are bound to happen to you.

Creating Wealth for Our Investment Partnership

I recognize that the conditions for creating wealth for our partnership are always there.  Here are the causes that will effect wealth creation:

1. We will identify and continue to accumulate great financial assets over time.  As long as they continue to be judged great financial assets, we will be unwilling to ever sell them.  Then, we will accumulate more and more of the great financial assets over time.  In addition, the value of the financial assets will grow over time.  They become a good foundation for our trading strategy in step #2.

2. The financial assets in step #1 will make cash dividends.  We can utilize this cash as well as prudent amount of borrowing against our financial assets to execute our trading strategy to generate additional cash.  Then, we will use the cash to accumulate more of the great financial assets in step #1.

Repeat steps 1 and 2, and we will create wealth for our partnership given sufficient amount of time.

Long-term Thinking

It is wise to look at things in terms of eternity.  When you produce a car, you should build it like it's going to last forever.  When you form a relationship with someone, you should treat that person as if you are going to know him (her) forever.  If you want to build wealth for yourself, you should structure your investments like they will provide you with wealth forever.

You know that the car you build, the relationship you make and even you won't last forever, but long-term thinking forces you to think and act in your best form.

On Inspiration

in·spire  (n-spr)

v. in·spired, in·spir·ing, in·spires

v.tr.

1. To affect, guide, or arouse by divine influence.

 

When you feel inspired with a thought, pay special attention and act upon it right away.  If you think about it too much, your mind may get in the way and eventually dissuade you from taking action.

Facing Challenges in Life

Don't be afraid.  Let the drama play out.

Life is unpredictable, and uncertainties make us feel uncomfortable.  If we just take the right steps each way, the desired outcome is assured by the universal law of cause and effect.

Volume Precedes Price

Selling climax is often accompanied with extremely high volume and sharp declines in price.  Everyone who is in fear has given up and is selling in capitulation.  Once everyone who wants to sell has already sold, who is left to sell?  Price often rebounds thereafter in the short to mid term.

Best Way to Improve Life

We often think about what we can do to improve our lives.  However, sometimes the simplest ways to improve our lives are about what we don't do or what we avoid to do that can make a big difference.  The same can be said for investing, health, relationships and many other things in life.