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Investment Philosophy: Difference between revisions
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== What are the most important principles of investing == | == What are the most important principles of investing == | ||
The most important principle | The most important principle to generate excessive returns is "being early". (Ahead of the curve) | ||
Being early means realizing something before most people do. (By law of demand and supply an asset can only be cheap if others don't think it's valuable.) | |||
The sophisticated investor therefore has to realize when conventional wisdom is wrong and cannot be afraid of contrarian bets. (Our current contrarian bet is Meta) | |||
We are | The most important principles to determine the intrinsic value of an asset is studying market size, team and moats. | ||
We are mainly focusing on disrupting technologies, outstanding founders and teams and strong moats at <u>reasonable</u> valuations. | |||
The most important principle of capital protection is "high confidence". | |||
High confidence means being sure about our investment thesis. | |||
There is <u>no</u> shortcut or workaround to high confidence but detailed and obsessive work. We are striving for an excellent understanding of every major sub-component of the investment thesis w/o loosing oversight. | |||
A high level of confidence allows us to take advantage of falling prices by doubling down(if the situation allows it) and avoiding panic reactions. | |||
A high level of confidence and understanding also allows us to differentiate signal from noice and panic first once real problems evolve. | |||
== Other == | |||
We don't follow any greater fool theory but recognize the prevalence of narrative based investing in speculative and unregulated markets like crypto. | |||
Our focus on truth leads us to establish a meritocratic [[culture]]. | Our focus on truth leads us to establish a meritocratic [[culture]]. | ||