I wish that more investors could be honest about how best to run a portfolio. In my opinion, you hoard liquidity, wait until it’s obvious and then pounce. Everyone knows this is how it works, everyone worships Buffett for having done it, yet few investors seem capable of following such a simple script. Then again, if this game were easy, there wouldn’t be opportunities. When today’s buyers get pressed against the wall, that’s when I want to buy. Until then, I’m waiting until it’s obvious. (View Highlight)
Long-time readers of this site know that I prefer an investing style that is both highly-concentrated and hyper-aggressive. My only goal is to maximize returns over rolling three-year periods. As a result, I’m completely agnostic about volatility, usually running my book well over 100% net-long, while rarely hedging. (View Highlight)
You see, in finance, good investments should be painfully obvious. Otherwise, they’re not worth making. (View Highlight)
We work in an industry where everyone is supposed to be an expert and have an opinion on everything. Given the fee structure and marketing imperatives of most funds, they do not have the flexibility to say the obvious “this is a really strange moment currently, and I just don’t know how it will all play out.” (View Highlight)
I live by two core investing rules; invest in situations where next year’s results will improve dramatically OR invest in situations where the underlying asset is so amazingly bombed out that it really cannot get worse. (View Highlight)
Buy cheap assets that are inflecting positively. That’s all you need to know. Everything else is superfluous, an own-goal; often designed to further the marketing efforts of your fund or convince yourself that you can out-think the market. (View Highlight)