To The Moon

“The biggest reward is not selling at doubles—it’s how long we ride to get exponential returns.”

⸻

It happens.

You wake up one day, check your portfolio, and a stock you believed in—quietly or confidently—has doubled.

Your first reaction?

Sell. Lock in the gains. Don’t be greedy.

That’s human.

But here’s a truth not many talk about:

Most people cash out too early, not too late.

⸻

🔁 A Double Is a Milestone, Not a Destination

When a stock doubles, most people think that’s the peak. But ask yourself:

• Has the story improved or peaked?

• Is the business still attracting more customers, cash, and attention?

• Would you buy it again today—even at this price?

If yes, then maybe… just maybe… it’s time to hold tighter, not sell.

⸻

🧠 Don’t Doubt the Market — Check the Business

Unless you’re in a bubble-stock like GME or a meme-fueled mania, the market doesn’t often hand you doubles without some underlying business momentum.

Before making a decision, check:

• Are revenues growing?

• Are margins expanding?

• Are more people talking about or using the product?

If the business is improving faster than the stock, you’re still early.

⸻

💡 What Rakesh Jhunjhunwala Said…

“When future earnings expectations peak and valuation is rich, I exit.”

But nobody really knows when the “peak” hits.

Is a PE of 40 too high? Or is 200 okay if earnings are growing 100%?

Instead of numbers, focus on expectation vs. delivery:

• When the market is over-expecting and the business under-delivers, the party ends.

• When the upside surprise is still possible, stay in.

⸻

🎯 Plan Your Exit – But Not By Calendar

A real exit strategy isn’t:

• “I’ll sell in 6 months.”

• “I’ll exit at 2x.”

It’s this:

“I’ll sell when the business stops improving, or the story is fully priced in.”

Let the data, not emotion, guide your move.

Review your positions quarterly. If the business story is intact, keep riding. If the music stops, walk away without regret.

⸻

⚖️ Position Size Keeps You Rational

“My salary is $2,000. I’m okay to lose this money for long term if my conviction is high.”

That’s the venture mindset.

Put in what you’re okay to lose. Let the potential payoff be asymmetric. Even if 3 out of 5 ideas don’t work, the big winner covers all.

If the position grows too large:

• Trim 10–20% to protect gains

• Let the rest run

⸻

🧘 Final Thought

“Conviction isn’t blind holding. It’s rational holding with updated facts.”

Doubles are exciting, but the real magic is in holding great companies longer than feels comfortable—with clarity, not hope.