Bio, Chemistry, Physics and Maths as Philosophy of Investing – “Dil Se” (from the heart)
I have been following a philosophy of “Dil Se” investing, I have spent some time introspecting to define what do I mean by Dil
Dil Se investing is a fine balance of “gut and softer aspects” and “Logic, analysis, and numbers”.
Gut and softer aspects are the Biology and Chemistry and Logic analysis and numbers are Physics and Maths. Dil
Biology: This is “Inside out” of the business and refers to Alignment of values, aspirations, purpose, legacy vs monetization, and being on the same page to deliver great outcomes similar to what is achieved when there is harmony amongst a few trillion cells of our body, that makes us feel happy and successful.
Chemistry: Is the “Outside In” is DNA and chemistry fit with Ecosystem Partners that lead to a win-win for all and long term value creation. In today’s fast-changing world any organisation will only be successful depending on how strong/weak is the alignment/bond amongst Ecosystem Partners.
Harmony amongst Ecosystem partners will minimize friction. The case in point would be the result of chemical reaction will be very different based on which of the elements of the periodic table interact with each other, e.g Hydrogen and Oxygen interact to produce water while on the other hand
the chemical reaction between some other elements could produce a bomb.
Physics: is all about “logic and domain”, helps in the understanding of creating sustainable business models, ability to compete, risks, trends to stay ahead in the business.
Maths: is all about “Numbers”, to help us understand different scenarios, cash flows, capital allocations, and capital efficiency, trade-offs, value creation and returns. The order of evaluation in my view should be Biology, Chemistry, Physics and Maths.
Happy to get your thoughts.
Rohit
April 2019
