Stillness as an Edge: How a 123% Return Was Really Earned
A quiet philosophy behind an uncommon year
“Nature does not hurry, yet everything is accomplished.”
Lao Tzu
Dear Partners,
In investing, as in life, the best outcomes accrue to those who can hold a calm perspective. The quote above captures something I have found to be deeply practical. Durable outcomes cannot be rushed. This past year has been strong for our family portfolio, but this letter is not a victory lap. It is a reflection on how I think, how I invest, and what it means to carry the responsibility of being your fiduciary.
I often return to the same image. A farmer who understands the land does not confuse motion with progress. He does not pace the field each morning demanding proof that the seeds are working. He tends the soil, protects what is fragile, and respects the seasons. In the same way, I try to protect our capital from the modern habit of constant reaction. Markets are full of noise. The real work is quieter.
Charlie Munger put it plainly: “The big money is not in the buying or the selling, but in the waiting.”
That line sounds simple, almost too simple, until you live through the years when waiting feels uncomfortable. I have learned that most investment mistakes are not caused by ignorance. They are caused by impatience.
The Farmer’s Mindset in Investing
In our view, successful investing resembles sustainable farming. We prepare the soil by studying businesses until we understand what can break them and what can strengthen them. We plant capital only when the ground is fertile, meaning the assets are real, the balance sheet is sound, and the valuation gives us breathing room. Then we allow time to do what time does best.
A farmer cannot tug on seedlings to make them grow faster. If he tries, he destroys the roots. Likewise, investors can destroy compounding by interfering too often. Most of the value creation happens quietly, below the surface, while nothing looks impressive on the outside.
That is why I pay so little attention to daily commentary. It is often entertaining, sometimes intelligent, but rarely useful. It can make you feel informed while quietly eroding judgment.
Seeds of Conviction: Three Case Studies
To make this philosophy tangible, I want to share three examples from recent years. Not as a scoreboard, but as illustrations of how decisions are actually made, and why patience can look irrational before it looks wise.
Iris Energy (IREN): Harvesting a Margin of Safety
Our investment in Iris Energy began when the stock had fallen toward roughly $5. That entry point did not come from optimism. It came from arithmetic.
At the time, the market was valuing the entire business at a level that did not reflect the underlying asset base. In simple terms, the sum of its infrastructure and capacity appeared worth materially more than the market capitalisation. That is what margin of safety looks like in the real world. It is not a feeling. It is a cushion.
The second pillar was balance sheet strength. Iris had no debt. That matters more than many people realise. Debt introduces a clock. A clock turns volatility into danger. Without debt, the company had time, and time is the rarest form of optionality.
When we started building the position in 2022, the stock was already down roughly 70 percent from the IPO, trading around $8. It continued falling after that. That period was not comfortable. But the foundation remained intact, which is why the position could be held with conviction rather than hope.
Later, the company began pivoting from being seen purely as a bitcoin miner toward high performance computing. I do not view that pivot as the creation of value. I view it as the recognition of value that already existed in the infrastructure. When markets finally reframe a business, the price can move quickly. The real work happens long before the reframe.
Today, IREN trades around $39. I continue to hold it. Not because I am emotionally attached, but because the original reasons for ownership were grounded in assets, balance sheet resilience, and a pathway for the market to recognise what was already there.
Core Scientific (CORZ): Resilience Unearthed from Ruin
Core Scientific is a different kind of lesson. It is about mispriced survival.
We invested after the company emerged from Chapter 11 in 2024, around $4 per share. Many investors could not look beyond the word bankruptcy. But bankruptcy often restructures liabilities, not assets. It can remove the burden that prevented the underlying engine from operating.
What I cared about was what remained standing after the storm. Infrastructure. Power access. Operational capability. A reset capital structure. In other words, survivability.
Today the stock trades around $15, and we continue to hold it. After a stellar year, it is tempting to treat gains as proof of being right. I try to treat them as proof that the process is working, and as a reminder to remain humble. The market can reward you and still teach you nothing if you let it.
Fluence Energy (FLNC): Knowing When the Harvest Is Ready
Fluence was a lesson in catalysts and disciplined exits.
We initiated the position around $8 when sentiment toward the sector was barren. There was no excitement, which is often the point. The business had a credible path to improved economics and a near term catalyst that could make that improvement visible.
As the stock moved toward $20, the valuation began reflecting what the market had previously ignored. At that point, the margin of safety narrowed. The crop was ripe. We sold.
A farmer who refuses to harvest because he likes his crops is not wise. He is sentimental. Capital deserves discipline, not attachment.
The Principles That Guide Capital at the Family Office
At the family office level, the job is not to win arguments or impress anyone with activity. The job is to compound capital while avoiding permanent mistakes. That requires filters that last longer than headlines.
Here are the principles I return to repeatedly:
Asset-backed
I want something real underneath the price. Like farmland that can be worked, even if the season is difficult.
Cheap valuation
I want to buy with room for error. Like buying a sturdy tool at a fair price, not a shiny one at an inflated price.
High yield when available, paid to wait
I love being paid while time does its work. Like renting out a property while the neighbourhood improves.
Market neglect
I often prefer what is ignored. The best orchards are not always beside the main road.
High insider ownership
I want management to feel the same outcomes as owners. Like a ship captain who sleeps on the same deck he steers.
No debt, or very modest debt
I want time on our side. Debt shortens time. Time is where compounding lives.
Net income matters
I want reality, not promises. A business should be able to feed itself, not constantly ask for more seed.
A catalyst within one to two years
I want a reason value can surface. Not a dream, a plausible mechanism. Like a bridge opening that finally connects an overlooked town to the rest of the map.
These are not rules for perfection. They are rules for survival. Munger said it best when he spoke about trying to be consistently not stupid. That is a deeper philosophy than it sounds. Avoiding big errors, over and over again, is how you earn the right to compound over decades.
Anchored in Conviction, Looking Ahead
After a strong year, many investors feel pressure to change the formula. I do not. The temptation after success is often the same as the temptation after fear. It is the urge to do something.
The portfolio remains anchored in conviction holdings like IREN and CORZ. These are not positions we hold because they have gone up. They are positions we hold because the original underwriting still stands, and because the businesses continue to meet our standards. I view that continuity as the true source of compounding.
There will be years when results are less pleasant. That is normal. The market has seasons. The only thing I control is process, temperament, and prudence. I will keep returning to those.
Stewardship and Peace of Mind
Being a fiduciary is not simply managing money. It is managing responsibility. It is holding a long horizon on behalf of others, even when the world is shouting about the next hour.
I want you to understand me as an investor in a simple way. I do not chase excitement. I do not confuse movement with progress. I protect capital first, and I pursue returns only through principles that can survive a cycle.
If I do that well, then returns become the byproduct, not the obsession.
Thank you for the trust you place in this approach. I do not take it lightly. I will continue to invest with discipline, humility, and a commitment to protecting both your capital and your peace of mind.
With warm regards and steadfast dedication,
Neel