Let me take you back to a party I went to not too long ago. You know the kind. A room full of people, drinks in hand, small talk about the weather, and then—bam!—someone starts bragging about their latest real estate score. “Bought this place ten years ago for next to nothing,” they say. “Now it’s worth five times what I paid.”
And here’s the thing: when someone throws out a number like that, it’s easy to get caught up in the excitement. Our brains love big, simple multiples. Five times your money? That sounds amazing! It’s a number you can grab onto, something that makes you think, “Wow, I need to be doing what this guy’s doing.”
But here’s where things get tricky. Multiples are easy for the brain to grasp, and they create this instant wow factor. They’re like the fast food of financial metrics—quick, tasty, but not always nutritious. What doesn’t get mentioned, though, is IRR—the Internal Rate of Return. Now, IRR doesn’t roll off the tongue as smoothly. It’s not something you can casually drop into a conversation and expect everyone to be impressed.
IRR is Hard
IRR is harder to grasp because it forces you to think about the whole picture—how long you’ve held onto that investment, what it’s really costing you in time and money, and what you’re actually getting back when all is said and done. It’s a bit like eating your vegetables. Not as exciting, but definitely better for you in the long run.
But here’s where it gets interesting. When you start focusing on IRR, you realize that those big multiples don’t always tell the full story. Your brain, in its rush to grab onto the simple and impressive, might cloud your judgment. You might start making decisions based on what sounds good at a party, rather than what’s really going to maximize your returns over time.
I’m not here to impress people with big numbers. I’m here to make sure my investments are working as hard as they can for me. That’s why we built Kubera. It’s not about chasing the next big multiple or getting caught up in the hype. It’s about cutting through the noise and seeing the truth, no matter what you’re investing in.
Whether you’re into real estate, stocks, bonds, or anything else, Kubera gives you the tools to look past the shiny numbers and get to what really matters: your return on investment. Because at the end of the day, it’s not about how impressive your investments sound—it’s about how well they’re actually performing.
So, the next time someone tosses out a big number at a party, just smile. You’ve got Kubera, and you know better. It’s not about the quick hit of excitement—it’s about the steady, consistent growth that comes from seeing the full picture.
Rohit Nadhani
CEO, Kubera
