The Flywheel Effect

An update on acceler8 watchlist

“Continuous improvement is better than delayed perfection.” – Mark Twain 

On Jan 14, acceler8 – The Curated watchlist was shared. One month later, here is a reflection on the journey so far.

Watchlist performance

The acceler8 watchlist portfolio delivered a return of 227.9% pa. One month is too short a period to judge, but still the numbers look good.

1. Few Big Winners

Strategically, there was two stocks from the Auto Industry- Bajaj Auto & Hero Motorcorp in the watchlist and that turned out to be a fine decision. Over a month, Bajaj Auto has gained 16% while Hero Motocorp has gained 8%.

2. Sudden acceleration

Luck would have it that even ITC, a stock which was lying motionless with very little movement suddenly decided to dust of its inertia and shot up by more than 10% in a single day. Phew.

3. Handsome dividends

The remaining stocks in the watchlist did not exactly light the stage on fire but they did bring some stability to the portfolio as well as generated income with handsome dividends.

GAIL , BEL and Castrol , declared dividends during this period .

Flywheel Effect

“The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.” – Jeff Bezos

Early this month we got the news that Bezos will be passing on the CEO mantle to Andy Jassy .  

Every time I study or read about Amazon , my amazement quotient really goes up by a few notches. The role of the Bezos in the transformation of Amazon from an online book store to multi-billion-dollar business empire is stuff of dreams for any entrepreneur.

As I reflect on a month of acceler8, I could not but help remember the two things about Amazon which inspires me a lot. The first one is the Amazon’s Flywheel concept and the other being their absolute devotion to the principle of customer centricity.

Source : Wiki

The Flywheel concept was made popular by Jim Collin in his wonderful book “Good to Great”. The underlying principle of  Flywheel effect can be summarized as:

No matter how dramatic the end result, good-to-great transformations never happen in one fell swoop. In building a great company or social sector enterprise, there is no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment. Rather, the process resembles relentlessly pushing a giant, heavy flywheel, turn upon turn, building momentum until a point of breakthrough, and beyond

Flywheel effect on acceler8

I sincerely believe that a combination of the flywheel effect and a customer centric approach will further enhance the usefulness of acceler8 to the subscribers.

The flywheel effect talks about momentum due to continuous improvements. And that is exactly what I am attempting at acceler8. You will hear from me shortly on this.

Watch this space for more details.

Keep Learning Happy Investing.