Game(stop)

There is this scene from Trishul (released in 1978) when Amitabh Bachchan (Indian Superstar)  comes to Sanjeev Kumar to strike a deal of Rs 500K (worth USD 160K in today’s money) with pennies in his pockets. To me this sums up what is going on with the Gamestop stock story in the US currently.

The story line of Trishul as a parallel to the Gamestop story:

Rajkumar Gupta (Sanjeev Kumar) leaves his first love Shanti (Waheeda Rehman) to marry a wealthy girl. Shanti raises her son from Rajkumar, Vijay (Amitabh Bachchan) to adulthood in abject poverty (read financial crisis 2008). After she dies, Vijay (read: WallSreetBets) comes to town to take revenge by destroying his father’s (read: Hedge Funds) business.

Like the 3 hour long movie, the Gamestop  story also has enough twists and turns.

Skip directly to a detailed blow by blow account. Or else continue reading this short version of what transpired before moving on to the detailed account.

  • June 2019 DeepFuckingValue starts buying call options on $GME(Gamestop) – Shares trading at $5.4.
  • Short interest building up in $GME.
  • Aug 22nd 2019 Michael Burry discloses his 3% stake in $GME – Shares trading at $4.3.
  • Aug 2020, the founder of Chewy (online pet store) Ryan Cohen takes 9% stake in GME.
  • Nov 2020: A user on WSB highlights that a hedge fund Melvin Capital is going long on GME put options.
  •  Dec 2020: Ryan Cohen increases his stake in GME to 12%. Shares trading up to $20.
  • Jan 2021: GME adds Ryan Coven to the board and gives 2 of his affiliates (his former COO and CFO) board seats; Shares trading around $20.
  • Jan 12th/13th: tons of activities on reddit/wsb and or discord channels heating up the activities on $GME counter as shares started moving.
  • Jan 21st: Short interest is up at 130%.
  • Jan 25th: Melvin Capital keeps bleeding as shares went up to $77; they have to raise capital ($3bio) from another big hedge funds in US.
  • Jan 27th: Elon Musk tweets about it; shares hit a peak of $475.
  • Jan 28th: Brokerage firms like Robinhood prohibit people to buy GME as they didn’t have enough liquidity.
  • Jan 29th: Citron Research announce they covered the shorts; shares close at $325.
  • Feb 2nd: Short interest goes down to 50%; shares trading at $90.
  • DeepFuckingValue has made a return of 260 times on his investment in 18 months.
  • Feb 6th: Shares trading at $64.

Jump to lessons learned, or continue reading for the detailed version.

Here’s a detailed version

The story began not that long ago in June 2019 with a reddit channel called u/wallstreetbets and the hero of this story is a user named u/deepfuckingvalue (u/dfv).

June 2019: DeepFuckingValue , started buying call options (explained below) on $GME(Gamestop) when the shares were trading at $5.4. He started buying those call options expiring in 18 months i.e January 2021. He spent $50k buying these options. Now I know what you must be thinking.

Call options gives the buyer of these options the right to buy a stock at an agreed price on an agreed date. The buyer expects the price of a stock to increase when he buys a call option. The maximum amount a buyer can gain is infinite while the downside is limited to the option premium. For example you buy a call option paying Rs 10 (option premium) on a stock currently trading at Rs 100. If the stock price goes to Rs 130, you have a right to buy at Rs 100 which means a profit of Rs 20(130-100-10) i.e (Future Stock Price- Current Stock Price- Option premium). Had the price gone to say Rs 70, your loss would be Rs 10 which you paid for the option (Option Premium).

Meanwhile: Short interest or short selling (explained below) was building up in $GME.

Notably, as of July 31st, 2019, Bloomberg reported short interest in GameStop stock at about 63% of the outstanding GameStop shares.

Short selling of shares is when market participants sell shares that they don’t own and then buy them back at a future date. Market participants aim to profit from short selling if the price of the shares falls. This is therefore different from the typical investment perspective, where the investor aims to benefit from the rise in price of shares (considered a “long” position). A high percentage of short interest means market participants are increasingly pessimistic on the stock.  For example If a stock price is INR 100 and an investor expects the price to fall to INR 60, one can sell the shares today and buy them back at INR 60. The profit thus is INR 40(100-60). A high percentage of short interest means market participants are increasingly pessimistic on the stock.

Aug 22nd, 2019: Michael Burry discloses his 3% stake in $GME. And yes, this is the same Michael Burry from the famous Big Shorts. $GME was trading at $4.3 at that time.

Following this, u/DFV wrote this post on reddit in Sept 2019.

One year later, July 28th 2020: u/dfv live streamed this video detailing his bullish case for $GME. This will put many analysts (read as brokerage research) to shame, who miraculously always have a target of 20% higher than current market price.

At this point, shares were trading at $4.00.

Aug 2020:  Founder of Chewy (online pet store) Ryan Cohen takes 9% stake in GME

Now, shares were trading at $6.59, up 22.26%.

Sep 19th 2020: A member of wallstreetbets writes

  • There is 120% short interest (explained below) in stock and mostly losing money
  • There is a new console coming in soon
  • Gamestop had 55 mio loyalty users
  • Company has net cash position of $300 mio

This lead to a bullish sentiment and shares are now trading near $10.

How can you short more than 100%: Good question! Let us say there are 100 outstanding shares of company X held by investor A. Investor B comes in, borrows these 100 shares and short sells them to investor C. Which means, outstanding shares=100, short interest =100. Investor B borrows these 100 shares again from C and short sells them to investor D. So now, short interest is 200 and outstanding shares is 100. So short interest now 200%

Nov 2020: One of the users WSB highlights that a hedge fund Melvin Capital is long put options (explained below) on GME (meaning Melvin is expecting share prices to go lower).

Suddenly WSB found their enemy- Melvin Capital (remember Balwant Rai aka Prem Chopra (famous for his roles as a villain) from Trishul).


Put options give the buyer of these options the right to sell a share of the company at an agreed price on an agreed date. It’s the opposite of the call option (explained earlier). Like in short-selling, the buyer of put options also expects stock price to decrease, but here, the buyer limits his/her downside. Because, the only amount at risk is the premium paid to buy the put option. If the price has not decreased, the buyer is not obligated to buy at the higher price, whereas in short selling the buyer is obligated to complete the sale at the future date.

Rewinding to the short selling example given earlier –  You buy a put option paying Rs 10 on a stock at strike price of Rs 100. If the stock price goes to Rs 130, you can choose to not buy it and therefore your loss would be limited to the Rs 10 which you paid initially for the option. Had the price gone to say, Rs 70, you could buy these and your profit would be Rs 30 (because you have a right to sell something at 100 that is actually trading at 70), subtracting the Rs 10 which you paid to buy the option. This would amount to a net profit of Rs 20 (100-70-10).

Let’s have a look at how things unfolded in the months of December and January.

Details Below

Dec 2020: Ryan Cohen increases his stake in GME to 12%. And later in Jan 2021 GME added Ryan Coven to the board. Shares are now trading around $20.

Jan 12th/13th 2021: Tons of activities on WSB and or discord channels heating up the activity on $GME counter.

Shares trading up 100% in less then a month to $40.

The war is on between Wall street Bets and the Hedge Funds.

The story is now heading to its climax.

Jan 19th : Citron Research announces that they were also short on GME expecting prices to go down to $19. Shares trading at $40.

Citron Research replaces Melvin Capital as public enemy no 1 for WSB.

Jan 21st: Short interest shoots up to 130%.

Jan 25th: Melvin Capital keeps bleeding as shares go up to $77. They have to raise capital ($3bio) from other big hedge fund in US called Citadel LLC.

Jan 27th: Elon Musk tweets about it. Of course he has a hate relationship with short sellers which includes Melvin Capital as well.

Later that day on Jan 27th: Melvin Capital announces that they had covered the shorts the previous day. Shares rocket to a record closing high of $347.51 on January 27, touching intraday highs of over $450

Jan 28th 2021: Brokerage firms like Robinhood prohibits people from buying GME as they don’t have enough liquidity.

Aside: How does Robinhood make money if they are a zero brokerage firm?. They make bulk of money ($400mio) yearly from selling the same orders to firms like Citadel LLC. Who is Citadel?, the one that rescued Melvin Capital…(Golmaal hai bhai sab golmaal hai)!!!

(The Robinhood story for another day!)

Jan 29th: Citron Research announces that they covered their shorts.

Stock closes at $325 on 29th Jan.

So Melvin out, Citron out.

Where are we today?

Short interest in GME which was hovering around 130-140% of underlying stocks has since dropped to 50%, primarily as funds like Melvin have covered their short positions.

Where is u/dfv?

His post on Jan 27th when $GME price was $347 is shown below. His maximum value of the portfolio on that day was at $48mio. (remember he only invested $50K)

The last update was on Feb 3rd when price was $90. His portfolio is down to $22mio as price dropped down to $90.

As you can see he has encashed $13mio which is showing up in cash. So even if price goes to zero he has made his $50k into $13mio or a return of 26000% (over 260 times) in just about 18 months.

At the same time he is also still long the shares and call options.

Where is GME trading now?

The stock is trading at $64 (as on 6th Feb) after touching a high of $475.

But what should be the right price of GME? Who knows!

As Warren Buffet famously said, “price is what you pay and value is what you get.

Ashwath Damodaran, NYU professor tried to price it and came with a valuation of $47.

–>So was u/dfv stupid to buy it? Remember he bought it when stock was at $4 in June 2019. And he has already encashed $13mio from it.

–>Oh so Melvin Capital was smart to short it? Remember they were short 5mio shares at well below $10 (probably around $5).

It is estimated Melvin Capital lost 53% of its value in January.

Come on what’s the ending? Is this happy ending or sad ending?

Picture abhi baaki hai mere dost. (Movie is still continuing)

The Reddit channel is still active, u/dfv id still invested, Melvin and Citron have left the waters but other hedge fund sharks are still lurking. So keep watching the space for more.

Lessons from this saga

Is this just a story or do we learn anything from this whole episode?

Of course this is an historic event and it does teach a few things.

  • Stock prices tend to follow fundamentals only over a very long term; in the short term the collective judgement of investors that impact demand and supply are bigger factors.
  • Stocks can remain overvalued or undervalued longer than one can remain solvent.
  • Short selling has unlimited downside so should be done with care.
  • Should short selling be banned? Not really as short sellers play an important role in the markets; but here there should always be market wide limits on short selling.
  • Retail investors coming directly into stocks is a trend which will only grow as technology becomes more accessible.
  • People putting in their own money at risk have skin in the game vs people playing with others money.
  • You have higher chance of winning if you do your own studies than getting influenced by some else’s trade ideas.

Cheers!!

Update on Brookfield REIT IPO

The next upcoming IPO is Brookfield REIT (Feb 3 to Feb 5). We have a positive view on this IPO. 

First a quick primer on what REITS are

What are REITs : In simple words, REITs or Real Estate Investment Trust units are fractional or part ownership of real estate assets which are leased out. This allows a retail investor to have part ownership in a range of properties that otherwise not be possible for the retail investor. Globally as well as in India most REITs are traded on major stock exchanges. The rents collected from the underlying properties are distributed in the form of returns to REIT unit holders

These returns on REITs (based on the rent collected from underlying properties) are of 2 types – 

  1. Dividend – not taxable under section 115BAA
  2. Interest – fully taxable

Thus, while the amount of returns matters, the break-up between dividend and interest is also important to determine post tax returns.

Movements in prices: REIT units are traded on stock exchanges where the price fluctuates with the perceived appreciation or reduction in the underlying property price and other factors such as interest rates

Taxability of realised gains i.e. gains made on sale of REIT units are taxed as capital gains (short term gains at 15% and long term gains at 10%).

What is yield: Yield is

 [Expected returns i.e (dividend + interest) / Purchase price of the REIT unit]

We have a positive view on Brookfield REIT IPO and feel it will open at premium.

If you would like to understand a technical rationale for understanding the reasons behind this positive view, pls do read further but remember we warned you that this gets a little technical 🙂

Comparison of Brookfield REIT with other 2 listed REITs in Indian market

*after adjusting for zero coupon bonds only Embassy has. 

Remember, higher % of distribution as dividend means more tax free income.

While Brookfield has lower proportion of its distribution in the form of tax-free dividend, its overall yield at 7.75% to 8.00% is much higher. Market price post listing is heavily determined by foreign investors who are less sensitive to breakdown of distribution in form of dividend and interest as for them interest is taxed at only 5%. Given strong demand from yield hungry investors and a high yield of 7.75% – 8%, we feel that Brookfield should trade at premium to IPO issue price. 

Applying to Brookfield REIT IPO and selling on listing may (click on link to see our earlier blog on this subject) enhance returns on your liquid funds with limited short-term equity risk.

Staying invested for longer periods is subject to equity and property market risks and returns.

Our view is positive on Brookfield REIT IPO in expectation of a listing gain

So how did first IPOs of 2021 fare?

Photo by MayoFi on Unsplash

The past few days have had a few IPO listings – IRFC, Indigo Paints and Home First Finance. Let’s have a look at how these IPO’s fared:

As you can see, due to high oversubscription gain as % of amount bid was much lower than listing gain %

We have considered listing price only and not beyond as our blogs on this topic focus on IPO opportunity and not market risk and return post listing. If you haven’t read that, have a look here. Home First price fell post listing (but remained above IPO price) and Indigo Paints price rose yet further post listing.

In our previous blog, we had maintained a positive view on (click on link to see blog) Home First Finance and Indigo Paints

How actual numbers would have fared on the above IPOs. We have assumed some IPO bid amounts for easy illustration.

Home First Finance:

Assumed bid amount (A)5,65,000
Number of shares allotted (B)28
Gain per share (C)101
Overall Gain (D) = B * C2,828
Gain as a percentage of amount bid (E) = D / A 0.5%

Indigo Paints:

Assumed bid amount (A)40,00,000
Number of shares allotted (B)10
Gain per share (C)1,117
Overall Gain (D) = B * C11,170
Gain as a percentage of amount bid (E) = D / A0.29%

The absolute amounts of gains look small but as said in our earlier blog, these come with limited short-term equity risk. When done systematically they add to the return on your savings bank a/c with some measured short-term equity risk for those comfortable with measured short-term equity risk.

A common problem : I applied but I did not get allotment 😦

This happens because of oversubscription. Applications upto a certain threshold amount then have to face a lottery system so that minimum lot size of allotment (generally around Rs. 15,000) for each allotment is maintained.

For applications under lottery system, some would get no allocation (no return) and some higher allocation (higher return) greater than the gains % shown above. We don’t know how you fared in the lottery but over time it evens out. We will cover IPO allotment process in a future blog. But remember even if you did not get any allotment but have applied through ASBA a/c your cost of application is nil !

Update on Indigo Paints IPO

Current Grey Market premium is estimated at 60%

HNI / Non institutional category is already oversubscribed 117 times as on 13:30 hours of Jan 22 (last date of IPO) and will increase further. Therefore, amount allotted as a percentage of amount bid for will be less than 1%

We are applying with some balance in our savings (ASBA ) accounts. Expecting low allotment but whatever is allotted should give a listing gain.

We are keeping balance available for Home First Finance IPO closing Jan 25. Lower Grey market premium but also may just see lower oversubscription thus increasing chances of allotment. 

How to enhance your 7% returns to around 10%

This part of the blog is for only and only those who have appetite for some risk on equity investing. Investing in high demand IPOs using ASBA and selling on listing is another way to enhance savings accounts returns with some measured risk.

So, your surplus funds are now earning 6-7% compared to 3.5% earlier (if not, read more on this here – https://blog.multipie.co/2021/01/18/how-to-enhance-your-liquid-idle-fund-returns/).

Now, how do we move to around 10% in 2021 ? We assume here that there will be IPOs happening in 2021 (pre-requisite)

Invest money in IPO’s using ASBA (Application Supported by Blocked Amount). You may convert existing savings account to an ASBA account thus ensuring that you continue to earn interest on the entire amount bid in IPO.

The amount is only blocked and does not leave your account. It only leaves your account in case you get allotted shares in the IPO. The more oversubscribed an IPO is the less likely you are to get allotted shares. Hence for IPOs already highly oversubscribed, you can put bigger amounts on last day.

So, how do we execute this strategy?

We suggest the following steps before investing in an IPO:

Below is the list of IPOs in 2020 which cumulatively generated a return of 4.3%.

Listing gains above are calculated on amount bid. % Gains on amount actually allotted are higher as amounts allotted are low.

Immediate IPOs are

Indian Railway Finance Corporation (Jan 18th -20th) : We do not have a positive view.

Indigo Paints (Jan 20th – 22nd) : We are positive. Check the multipie blog on Jan 22 for final view after we factor in last grey market premium and updated level of oversubscription

Home First Finance (Jan 21 to Jan 25) : We are positive. Check the multipie blog on Jan 25 for final view after we factor in last grey market premium and updated level of oversubscription

Brookfield REIT (later this month) : Currently, we are positive. Final view will be there on last date of IPO on multipie blog on last day of IPO

Again, do this only if you have some appetite for equity risk.

Note : SBI Cards above gave minus 13% returns on listing. An investor would have – 13% / 44 = minus 0.3% on amount bid for as it was oversubscribed 44 times. Markets crashed in March 2020 in the one week gap between application date and listing date

If you had bid for 10 lacs in Reliance Power in Feb 2008 using above strategy, you would have got an allotment of 10 lacs / 190 equal appx 5,000 rupees only as it was oversubscribed 190 times. It had listing gain of 21% and you would have made 1000 Rs. if you sold on listing. If you held on, the 5000 Rupees allotment would become close to zero very soon.

In general, if done in below disciplined way

Ia) IPOs chosen well (high grey market premium, high oversubscription)

b) sold immediately on listing (basically one week risk)

This strategy should give a return enhancement on the savings a/c return for those having some short-term equity risk appetite.

Do let us know in the comments section what you think about this strategy and any other topics on investing you’d like us to cover.

How to enhance your liquid/idle fund returns from 3.5% to 7%

Is this how you feel when you look at your returns from liquid funds?

Let’s change that feeling!

So what are Liquid Funds ?

Liquid Funds are Mutual Funds schemes that invest in very short term and safe debt instruments. Liquid Funds have a low risk of default but they give a low pre-tax return of 3.5%.The post tax returns are far from optimal as your return is lesser than the inflation rate.

There are low risk ways to enhance this 3.5% returns to up to 7% while meeting your considerations of liquidity and risk.

Sounds interesting? Multipie tells you how

Moving money from liquid funds to Savings account

Assuming you have no loans (else retiring them might be superior option),

Select Savings bank accounts can offer you higher rates of interest compared to Liquid Funds and also provide full liquidity when required.

Savings bank accounts of the following 2 scheduled commercial Banks operating under RBI licenses: AU Small Finance Bank and IndusInd Bank offer higher interest rates and a very low risk of default. Additionally, there are some other well managed private sector scheduled commercial banks that both offer good rates and safety. Thus investor has several options.

 Au Small Finance BankIndusInd Bank
INR 1L- INR 5L5%5%
INR 5L-INR 10L6%5%
INR 10L and above7%6%
Indicative rates offered by these banks

But what about risk of this strategy?

In India, depositors have not lost money in a scheduled commercial bank since Independence in 1947.

Points to note:

People lost money recently in PMC Bank which was a co-operative bank and not a scheduled commercial bank under RBI.

Yes Bank and earlier Global Trust Bank (GTB) were scheduled commercial banks that had asset quality and other problems. Depositors were fully bailed out by the Government and RBI. Failure of a scheduled commercial bank has a negative effect on entire banking system.

AU and IndusInd are well managed scheduled commercial banks and have been chosen after understanding their detailed financials and loan book quality. Investors could choose other scheduled commercial banks also based on their personal comfort and research but should avoid co-operative banks.

Some of the parameters for their safety are:

 Au Small Finance BankIndusInd Bank
Credit RatingAA-/StableAA+/Negative
Capital Adequacy  Ratio21.50%16.55%
Capitalization (INR Cr)28,03873,416
Price to Book Ratio*5.222.16
*A higher Price to Book ratio indicates that stock markets have a good view on the company

Above is a way to improve your 3.5% return to 7% in a low risk way.

What if we told you that with some short-term equity risk this 7% return can be enhanced to up to 10%. To know more about the same, read the second part of our blog

(https://blog.multipie.co/2021/01/22/how-to-enhance-your-7-returns-to-around-10/)on this subject provided you have appetite for short-term equity risk.

The path for 7% to 10% is riskier and more complex than from 3.5% to 7% but for people with some appetite for short-term equity risk, this should make sense.

Is investing really that complex? Is anything really that complex? Is rocket science even rocket science?

It was December, 2017. My cousin, Dr Amit Prabhu, called up and said “I am coming to Mumbai for a week, will stay with you. Can you arrange for 4 dozen eggs, 4 kg of paneer from a good quality source and 1.5 kg of plain peanuts?” I replied “Of course!” while being perplexed about the oddity of his question.

When he came, he looked different! My 40 year old cousin looked like he was in his 20s. Jawline, defined biceps, wearing an M sized shirt. As if straight out of college. I punched him in the stomach only to have his washboard abs block my fist. He and I had idolized Hrithik Roshan, Salman Khan et al in our teenage years. Pumped iron senselessly at gyms, compared our bicep sizes, bought body hugging clothing, you know what a 90s kid went through! But never saw much progress for over a decade. Eventually, the grapes became sour and we concluded at that time “It’s all steroids. We would rather not have a beach bod if that’s what it takes.” And now at 40, he seemed to have cracked the code.

He gave me a 2 hour talk on how he got here. “Its simple” he said. An online community Fittr (then called Squats) helped him learn understand nutrition. All he did was:

  1. Set his fitness goals and accordingly set a calorie intake
  2. Monitored his total calorie intake
  3. Within that total calorie intake, he had set a certain proportion of carbs, proteins and fats
  4. Exercised moderately (and not senselessly like earlier!) but regularly
  5. Been disciplined on all 3 points above

And that’s it. Those six pack abs which eluded him for a decade showed up in 4 months with nothing more than the steps cited above.

The oddity of his eggs, paneer and peanuts question now was explained! That related to point no 2. More on that later.

This was a time when I was grappling with being overweight. Along with that came blood pressure medicines and statins for controlling cholesterol. Taking copious notes, I came up with my own customized 5 point plan. Took me 8 months to shed 18 kgs, stop my BP medication and bring my cholesterol to a healthy level.

So how is all this related to investing you ask?

Coincidentally at that time, I was also grappling with poor portfolio returns. Unresearched fun fact – Stress levels and health are inversely correlated with portfolio returns! What would happen if I applied these same principles to investing?

Think of it…

Me and my cousin focused on the gym and all things sundry, ignored eating right and didn’t see results

Have crash diets, meal replacements, protein supplements and long hours at the gym made anyone healthy? People may have lost weight, built some muscle, yes. But most gained back the lost weight soon enough.

Have share tips made anyone wealthy? People may have made gains. But most would have lost that money on the next tip.

We tend to focus on tips, short term plays – buy XYZ stock at 100, sell at 120, stop loss 90. That approach doesn’t create wealth. You are better off at a poker table – at least you enjoy the game! Can you be consistently right about XYZ hitting 20% every time you buy? If yes, skip reading further :-p

What’s the lesson here? Focus on 1. What matters and 2. what is sustainable

Focus on eating right. Not on short-term diets. Focus on regular exercise and break-up of diet i.e. allocation of calories between carbs, protein and fat.

Focus on investing right. Not on which stock is going up. Focus on asset allocation between debt, equity and gold.

We had cycles of being serious and being casual about our goal of six pack abs

In bull runs, the markets seem attractive don’t they? Your excitement about markets goes up. In bear runs, you blame the stock market and call it a gambler’s den. Sounds familiar?

Be a consistently active investor or be a consistently passive investor. Don’t be active when markets are rising and passive when markets are falling.

Was it really simple to get six pack abs?

5 point plan! That’s simple. Adhering to that 5 point plan? Now that’s the tough part. It’s easy to give up to temptations. Now do you understand my cousin’s obsession about eating right – both what he eats and how much he eats? And also he follows the same routine even while traveling.

One core life principle is – discipline trumps intellect. And it’s true about nutrition and more so about investing. Be disciplined about where you invest and how much you invest.

In the coming few weeks, we will delve deeper into this from an investing perspective.

What’s the 5 point plan for managing investments?

You can guess this by now but let me spell it out anyway.

  1. Assess your goals and risk profile
  2. Based on 1, form an asset allocation
  3. Within that asset allocation, pick the right investments. ‘Right’ here points to cost efficient and quality investments in each asset category viz. debt, equity and gold – more on this later
  4. Rebalance asset allocation at regular intervals (and not very often!)
  5. Be disciplined on all 4 points above

If you don’t believe me, ask Master Shifu!

Image credit: DreamWorks Animation (Universal Pictures)

Everything is simple. We end up complicating it to prove our intellect to ourselves. There are no quick results ever. If there are, they won’t last. Slow, boring but consistent is an approach that should be applied to everything in life.

And if that’s not enough proof, here’s Po looking at the dragon scroll reflecting back “there’s no secret, it’s you”.

Image credit: DreamWorks Animation (Universal Pictures)

And before you ask – No, I do not have six pack abs but I am fit. I am no billionaire investor but I have managed my investments well.

Some day……..I will be a billionaire with six pack abs.