Leverage is good when used smartly

Leverage attracts people and vice versa. Whenever we want to trade or in any case of acquisition, what we expect is not the mere margin profit, instead we shoot for highly leveraged return. This is primitive emotion of greed. People making fortune at investments are great example. They invest after checking the fundamental and what the balance sheet has to offer and invest. This is not an easy job. They wait for couple of year to compound with a hope of no economic depression and make lot of money. That is huge. Here, like many modern day technological leverages are not available, instead they rely upon the opportunity leverage. The future is full of possibilities and by their analysis they might have found out the future of the organisation is about to explode. These rich people are very keen at predicting the outcome by the current, which now has been one of the toughest job. Because of the exponential curve of growth, predictions are less probable to tryst upon. Yet wen predict a change, but the accuracy cannot be predetermined.

Even time allocating for fundamental analysis became so relevant because of the uncertainty in behaviour. With more knowledge, we have diversified views and opinions. When masses diverse, the opportunity soars and predictions dries.

Investing in oil in the 70s is not a big deal. Mechanical industries was at its best and transportation was proliferating like a wildfire. There was immense opportunity. Yet some averse the industry and stuck at the everyday loop. But those invested a lot of money. They are still enjoying the late fortune. Now everybody is convinced ( and it is true) about the digital age. Digital industry isn’t just a progression of monomaniacal path, it is very well diversified and made a lot of confusion among baby investors. For the experienced ones, they are either sure or were left the industry. These new investors (including and mainly retail investors) are influenced by the leverage and expecting a moonshot return. With little experience and learning, especially in this highly unpredictable world, this might turn into a foolishness.

Because focusing on leverage is not about learning to earn, it is about earning to expense. They are playing finance with lack of financial education. Leverage is incentive and inducing, but we have to play it smart

Comments

Focus makes the difference

The amount of work depends on the amount of time we spent on and the amount of focus. To be precise, it is the product of those two. There are various types of practices that makes up to a perfect finishing time. But whenever we look at it, the core always lies in the amount of we focused. We can even say that focus is solely responsible for completion. Without focus nothing cannot be completed. It may stay unsolved forever. People try to make their lives better by doing several things, in the end we could say that they were indirectly trying to improve their focus. Focus helps is to accomplish things within a very short span of time. There by reducing the time wastage and leaving things perfectly finished. With focus, we can complete even the task that now feel like impossible. People often neglect this fact try their best to make a difference in their lives by merely altering the surface. That may do good in the short term. But in the long term, it does nothing. We have to change ...

Pitching an idea

Pitching an Idea to the investors when we desperately need money is quite challenging. Convincing investors is not an easy job. We have to go multiple time to receive first round investment. Investors care more the enthusiasm and mentality of the founder than the idea that they are pitching. In order to show the driven passion, we must have a very good communication skill. Most of the founders keeps their skill at convincing investors at its peak. When they see the opportunity along with it, they tend to invest. Even investors with years of experience fails to spot the right person and idea. But if you ask whether they regret, most of them would say no. They did made their decision based on their knowledge and capability at that time. Investors don’t need to know all successful ideas and companies, they just focus on the ones that aligns their fundamentals. Everyone has their own view of analyzing and selecting. Therefore pitching an idea to the investors might bring the investment i...

Focus on mission

Startups instead of focusing on the investors and profit, they should look at solving problems and making an impact. By doing so they can create a culture where it alters the way people think and act.

Pandemic accelerated business

The pandemic like we know did more adverse effect than good ones. But it also made some industry to thrive. Mostly digitally pivoted industries found a rapid growth during these fields. When the whole world were instructed to be in home, the demand for online services soared. The entertainment industry which were struggling to survive made to the top. Thousands of digital based startups reached unicorn status. This is clear indication that where the world is going and how the future business model should be. Everyone knows that the world belongs to digital giants in the future. All of us are somehow spending hours and hours in the internet. Researchers indicates that this number will only go up. This is one of the reason we see a lot of tech startups founded by non techies. They saw the opportunity and tried their own hands. Even industries focusing of physical or tangible product and services are integrating their business to the internet. What this pandemic did was it accelerated...

Society can be a trap

There are lot of traps out there. Only after falling or getting out of that trap we realize that we were bondaged for a very long time. We were born into the society trap where everything is predefined. Everything is written and all we have to do is to obey them. We are not allowed to wander with our will and certainly not with any other rules. Predefined are the prime ones. When we look at those cultural scribings of activism, we could see that everything is limiting and designed to refrain is from our true potential. The hardest thing is not being unaware of this trap, it is being in the trap even after knowing you are in a trap. This makes us to think differently. Because we found something, probably, no one around found. It would be game changer for everyone. It could transform the society and culture, paving a more promising future for the generations to come. But what happen when we introduce this theory to those blind people is quite depressing. They mock and joke you, laugh a...

Uncomfortable situation

Being uncomfortable with anything is a sign that we should seek what's there to is. Most of the people settle instead. This mistake once proceeded results in a great misery.

Emotional scars

It is important to have emotional scars. Once you're hit so badly emotionally, your mind reacts in such a way that of the experience it had. By exposing ourselves to hard experiences, we could constantly make our mind more rigid, capable of facing hard problems. The sooner we get there, the better the life experience will be.

Eliminating shallow work

Almost everything that added value to growth is provided by few things. About 80% of the growth is happened because of the 20% of the well contributed things. This is a very famous principle. This is one of the reason for advices such as focus on few things stands relevant. Giving time and energy to few things makes it easy to get more output. And the results are truly visible. By constantly trying to expand the focus to many things results in shallow results. It is no good for none. To make that 80% improvement in our personal or professional matter, we need to spend the time wisely. By selecting the things to focus upon has this direct correlation with output. At times, we do feel that everything is necessary and it cannot be completed without it. But those are meant to finish as secondary. Primary works have primary importance and yields more results. For every energy we puts in, we expect results. The more we 80/20 principle, the more things get done. We can easily so...

End of the day

How we spend our time datermines how we spend our life. The productive minute spend makes the hour great. It is just the acts at one in sixtieth of an hour. Just a minute of greeting could turn the entire hour into a blossom. We can observe the high energy and enthusiasm throughout. Yet most people neglect this simple fact of turning a minute to impact an hour. The entire blocks of hours slips this way. The case is not different with day. An hour of favourable act alter the entire day. Here the ratio of time spent wisely to spent vaguely is relatively small. Yet the avoidance is common. This can can be extended into year, decade or lifetime. The same feel we experience at the end of the day when spent an hour in purpose is similar to the reinforced version of it at the end of life. So it's not so difficult to figure out how the final stage of life would be like. By carefully measuring the blissfull experience of each decade, we can most accurately predict what it would be like to b...

Use information for seduction

The ability to get out of yourself and dig into other people's lives can be useful when it comes to seduction. we must let ourselves subside and know the opposite person well. Know what they want, what they like, how they would react to different circumstances, and whey they like and dislike. During this process of minute scrutiny, never leave a clue that might lead to suspicion. Digest this information and keep tracking the person occasionally and ask them subtly about those private things to show you really care what they said. This sense of feeling that this person cares about us when used correctly can be a tool for seduction.

Insanely Practical

Search This Blog