Large cash calls – not as critical as perceived to be

Letter # 88 | 24 May 2022 |

Investors often lament: “I should have sold at the top and created enough cash to invest during the bear market” In today’s ET article, we intend to debunk the notion that large cash calls are critical to wealth creation. We will submit that while cash calls give us mental comfort (we could buy at a lower price!), we overestimate their benefits (when one considers their opportunity cost).

We will conclude that, as investors, our time is better spent focusing on investible businesses and the price we should pay for them, rather than inordinately worrying about cash calls. To read, please click: https://economictimes.indiatimes.com/markets/stocks/news/taking-large-cash-calls-is-not-as-critical-as-it-is-perceived-to-be/articleshow/91748654.cms

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies are provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.