Margin of Safety
We prioritize downside protection over all other considerations. If there is meaningful risk of permanent capital loss, we do not invest.
Concentration
We limit ourselves to 8-12 positions at a given time, ensuring that we only invest in our best ideas.
Low Turnover
We employ long-term holding periods to capitalize on pervasive investor impatience, facilitate compounded returns, and minimize tax drag.
Power Law
A small number of investments will have a disproportionate impact on returns over time; we therefore limit ourselves to investments that are truly capable of making a difference.
Game Selection
We focus only on inefficient market segments where competition is scarce and opportunities are abundant.