Apply JEFF BEZOS DAY 1 Technology to your INVESTMENTS on First day of the 2023.

 1^st January 2023

Apply JEFF BEZOS DAY 1 Technology to your INVESTMENTS on First day of the 2023.

Greetings from Hitesh! Warren Buffett once said that the advantage of being RICH and SUCCESSFUL is people will pay attentions to what you say. Same applies to the 4^th RICHEST Guy of the WORLD Mr.JEFF BEZOS. Now let us understand his DAY 1 technology.

What is the meaning of DAY 1?

Just take a deep breath, be with peace and remember your first day in your SCHOOL / COLLEGE / The day when your BELOVED said yes to your love proposal/ the day when you got your FIRST JOB / The day you got MARRIED / The day you got your FIRST KID / The day you bought your first CAR / HOME or OFFICE.

The common link in all the events was the EXCITEMENT / HOPE / HAPPINESS Mixed with FEAR of unknown. In short, you were at your TOP energy level with 100% attention in the PRESENT moment. If you can recall – you would not have thought about PAST (as this was the first experience) and you would not be worried about FUTURE as you were 100% HOPEFUL for BETTER TIMES AHEAD. AM I RIGHT? 

JEFF keeps his office always on the DAY 1. He manages as if it is his FIRST DAY.

Now let us see what JEFF does to be ALWAYS on DAY 1?

In his annual letter JEFF says following “Here’s a starter pack of essentials for Day 1 defense: customer obsession, a skeptical view of proxies, the eager adoption of external trends, and high-velocity decision making.”

He talks about 4 factors and we will deal with each of them from INVESTMENT PERSPECTIVE. 

CUSTOMER OBSESSION:- 

What JEFF says “There are many ways to centre a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer focus is by far the most protective of Day 1 vitality”.

There were many ways to manage your investments. You can look at FIIs / you can look at DIIs / you can look at NARENDRA MODI / you can look at Russian War / you can look at TRADING / you can look at FUTURES and OPTIONS / there can be many other ways also. But the best way according to me is to LOOK at the INVESTMENT as your BUSINESS and LOOK at the BUSINESS of the COMPANY you wish to invest in DETAILS. 

FII / DII / Fellow investors / MODI or China are not going to give you money. The business of the company is going to give money to you. If your company is doing good business / maintaining its growth year after year - you have nothing to worry for the other factors. Just stay invested. 

A skeptical view of proxies:-

Most investors come to the market looking at their FELLOW Investors – he has made tons of money, so I can also make tons of money. Some do not enter the market looking at other people’s losses.  This is called PROXY.

JEFF says “A common example is process as proxy. Good process serves you so you can serve customers. But if you’re not watchful, the process can become the thing.”

What he says is once you installed the PROCESS – you need not relax. You need to be watchful and alert about the process going correct or not. (Buffett said this in another way – keep your eggs in one basket and keep an eye on the same). 

PROXY is the major culprit for the NORMAL life of most of the people. 

Let me share a beautiful example of PROXY – there are people who believe in GOD and there are people who believe there is NO GOD. 99.999999% of the GUYS in both the LOT have not taken troubles to FIND that there is GOD or there is NO GOD. They are using their RELIGIOUS BOOKS / SAINTS as the PROXY for their BELIEF. They have NO PERSONAL EXPERIENCE of the TRUTH. 

I follow the likes of BUFFETT and JEFF – I am in search of the TRUTH. I am not in a HURRY to conclude. This calls for ALERTNESS all the time. I remain in PRESENT due to these THOUGHTS. When I am in PRESENT – MIRACLES happen with me each day. 

The eager adoption of external trends:-

Jeff says “The outside world can push you into Day 2 if you won’t or can’t embrace powerful trends quickly. If you fight them, you’re probably fighting the future. Embrace them and you have a tailwind.These big trends are not that hard to spot (they get talked and written about a lot), but they can be strangely hard for large organizations to embrace.”

For investors this is one of the major factor as he has to deal with WORLD Events (Say CHINA COVID policies) / Country Specific Events (say Demonetisation) / Industry Specific Situations ( China Dumping) / Economy related issue. All these are going to affect you – whether you like them or not. Smart investors CALIBRATE their investments along with the events. They are fast in booking losses when it is small. There is no point in complaining about the events happening. All you need to do is to EMBRACE them fast.

High-velocity decision making:-

Jeff sys “Day 2 companies make high-quality decisions, but they make high-quality decisions slowly. To keep the energy and dynamism of Day 1, you have to somehow make high-quality, high-velocity decisions”.

Most guys says – I will think / I will ask my wife / ask my Brother in law / ask my CA / will discuss in the family. They are “day 2” kind of people. Their progress is always SLOW. 

How to take decisions?

JEFF says “Most decisions should probably be made with somewhere around 70% of the information you wish you had. If you wait for 90%, in most cases, you’re probably being slow. Plus, either way, you need to be good at quickly recognizing and correcting bad decisions. If you’re good at correcting, being wrong may be less costly than you think, whereas being slow is going to be expensive for sure.”

He makes three important points.

1.   Make decision with 70% information. Do not wait till all the details are confirmed to you.

2.   If you feel you are WRONG – just keep stop loss and get out.

3.   Being wrong will cost you little loss (as said above) but by missing the opportunities you are incurring lifetime loss. For my regular readers – I have been predicting BULL market from 5^th Dec., 2008 onward. Those who followed me made tons of money along with me.

Time and again I have made a BOLD call based on 70% of the information.

A. In October 2016, before DEMONETISATION happened I said I see Market making a NEW HIGH by MARCH 2017. It happened.

B. In the height of Corona in May 2020, When Nifty was 8000 around, I said it will be 12000. It happened.

C. In May 2022 – I said Buy in May and celebrate Diwali. Nifty moved up from 14800 to 18200!!  

Accuracy is our speciality. 

Another Point JEFF says “Third, use the phrase “disagree and commit.” This phrase will save a lot of time. If you have conviction on a particular direction even though there’s no consensus, it’s helpful to say, “Look, I know we disagree on this but will you gamble with me on it? Disagree and commit?” By the time you’re at this point, no one can know the answer for sure, and you’ll probably get a quick yes.

There is nothing like SURE SHOT or GUARANTEED things in life and market. All you have to take a fast decision, watch whether it is working or not and if not change it with little loss. I have privilege of working with the shrewdest of the HNIs and Big investors in India. They all are quick in taking decisions and equally quick to book the loss if they go wrong, without any regrets or blame. They follow DISAGREE and COMMIT philosophy. Many times when I say I don’t suggest investment in so and so company – they would say – let us try and ask your team to keep a watch. This approach is very suitable for making big money at the fastest pace. 

Jeff also makes another beautiful point “recognize true misalignment issues early and escalate them immediately. Sometimes teams have different objectives and fundamentally different views. They are not aligned.” 

Time and again I see various portfolios of my clients. They buy shares of 100% opposite industries – one is moving up and other is moving down with the net results that portfolio is not giving any returns. 

Another misalignment is that in a small portfolio of just Rs.5 lakh, I have seen 50 or more companies. This kind of guy never makes big money. They always blame their luck or feel jealous for other’s success. They are simply not ready to align with the market. 

What NEXT?

All of the above steps are SIMPLE. This is the beauty of all great guys. They keep it simple. I am following all the steps and I am always feeling DAY 1 when I am in the market.

Today is the 1^st day of the most eventful coming year 2023. Take action and join us for Indian / USA Equity Investments Inputs and also for Crypto Investing.

Also you can get glimpses of your coming year with the help of astrology with us.

Remember – Accuracy is our speciality. If you don’t follow JEFF – you will always end up saying – I SHOULD HAVE LISTENED to HITESH PARIKH. 

Time to CHANGE your FUTURE is PRESENT. Today is the 1^st day. If you start changing today - your new year will surely change. Contact us fast.

Wish you all a very happy 2023.

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

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

 

Hitesh Parikh.