The secret of Reliance Jio’s Windfall Profit. Hidden Secret.

 28^th September 2022

The secret of Reliance Jio’s Windfall Profit. Hidden Secret.

Dear Fellow Travellers,

Namaste! Say you are investing Rs.100 and making Rs.107 or Rs.112 or Rs.125 after one year – you can assume that the first option could be Bank Interest, the second option could be Mutual Fund and the third one could be Direct Equity. But what about the option in which you make Rs.1500/-? Rs.100 to Rs.1500 – 1400% profit. We call it Windfall Profit. Do you want to make such a profit? Let us understand.

How SMARTEST of the SMART investors invest their money?

They know what will be their maximum loss when they start their investing. They are 100% OKAY to lose that amount once they invested. Though they have done a detailed study and taken care of all possible factors they may think about before investing – they are open to the idea that they may go wrong also.

In the share market, we have STOP LOSS kind of options available but when one is investing in the industry and business – they have a long gestation period and they are taking an immense risk. They have to wait for 5-10 years period before they can even decide whether they were right or wrong to start those businesses?

So, when they plan for their return – they plan for Windfall Gain or 100% loss.

How to Construct a Portfolio for a WINDFALL GAIN?

Rakesh and Buffett follow the above model when they invest in stocks and that’s why they reach the top and stay at the top.

In my 30 years of experience – this is the only SURE SHOT WAY for SURE SHOT WEALTH CREATION. If you find any other way – it is an illusion. Understand the steps they take.

1.   Find out well-researched 10-20-30 companies as per their CORE COMPETENCY.

2.   Start investing in them. Rakesh had 34 companies or so. Buffett had 215 companies or so.

3.   All normal investors would agree to the above 2 steps. What they may agree with but 100% do not follow is the following steps.

4.   Rakesh kind of investors go on adding more and more funds every year to their winning horses. While leaving the loss-making companies or non-moving companies untouched. (they have also been picked up by detailed research. So, so they are not in a HURRY to conclude).

 

Rakesh bought his first Titan share at Rs.40. He kept on adding even after the 1:20 split. (1:1 bonus and 1:10 split). Today Titan is Rs.2600. Multiply the same with 20 and you have Rs.52000 per share original share price. I am not adding the dividend into the same.

 

Rs.40 to Rs.52000 per share is a WINDFALL gain. Do You agree?

5.   He could identify just 4 stocks like this in his 40 years career.

6.   He made tons of money in them due to the above strategy.

7.   There is NO WAY UNDER THE SUN to spot a company like TITAN or CRISIL without doing TRIAL and ERROR.

8.   Ratan Tata, in 2015, invested Rs.20-Rs.25 lakhs in some START-UP. He invested just Rs.3 crores. 2 of the start-ups made 100X for him in the last year.

Some of the finer points to follow for WINDFALL GAINS: -

1.   There are no SHORT CUTS.

2.   There is NO GUARANTEE that you have done research and management is good so the stock will move fast.

3.   All you have to do is to invest and go on investing. But the second round of investing will be in WINNERS only. 3^rd round will be in winners among winners only. You go on creating a PYRAMID over the years.

4.   Don’t SELL the losers. It’s just that they have not moved up as fast as the winning horse. Who knows they may also pick up the speed in coming years? They are picked up after research only. So, they are not BAD companies. Just that their TIME has not been stated.

5.   Generate new investment capital from TRADING / JOBS or BUSINESS.

6.   Play the full business cycle of the company without being in a hurry to book your profit fast.

7.   Your ideal investment span should be 7-10 years in a given company.

8.   Over the years – your dividend will be more than the actual investment amount and you will have no DESIRE to SELL THOSE GEMS from your portfolio.

How do NORMAL investors behave?

Normal investors remain normal because their thought process is NORMAL. They follow the SAME MODEL with respect to their KID’s education but when they invest their money – they fail to copy the same.

1.   You put him in a good school after due research.

2.   You are ready to wait for 20-25 years before your kid can even earn a single rupee from a JOB or BUSINESS.

3.   If he fails in a year – you will PAY the FEES AGAIN for the SAME STANDARD without LEAVING the SCHOOL. Most parents paid the fees in CORONA without education or a so-called pass certificate.

4.   Along with SCHOOL FEES, many parents will spend an equally good amount on PERSONAL TUITIONS or COACHING.

5.   They will also spend tons of money on other activities which are not related to STUDY.

6.   The idea is to equip the KID with the best possible skill sets so that he or she can take care of himself/herself in the future.

7.   Kid may score first class in some years and may score PASS CLASS in some years. But – his parents keep on investing in his education without looking at short-term success and failures.

8.   The KID becomes a WINDFALL GAIN maker after 25 years. Many times, they recover their 25 years of education investments in 2-5 years of job only.

So, NORMAL people know the WINDFALL GAIN MODEL when it comes to education but they are not ready to follow when it comes to INVESTING their MONEY.

What NEXT?

One of the unique points of all the investors is that they keep their TEAM SAME in profit or losses. They don’t jump from one consultant to others or cry when one or two years are below average performance. Normal people also keep the SCHOOL the same.

The above is the SIMPLE way of making tons of Money for life and generations. You may follow it or not. I leave it to you. But there is no other way for sure.

Mukesh Bhai is following the above Model. Make your choice.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

Learn a Lesson. Live with Passion & Invest with Reason.

Hitesh Parikh.