Listen to the deep-dive discussion – The Attention Cost of Bookmark Stocks (34:23 min) “The difference between successful people and very successful people is that very successful people say no to almost everything.” — Warren Buffett The Universal Principle Every decision has two costs. The first is visible: money, time, effort. The second is…
Position Sizing – The Final Act of Conviction
Listen to the deep-dive discussion – Position Sizing Matters More Than Stock Picking (31:18 min) “You have your best idea and your tenth-best idea in the portfolio at the same weight. Why?” — The Infinite Investor “The idea of excessive diversification is madness. Going into your seventh one rather than putting more money into…
Cash as the Infinite Option
Cash as the Infinite Option The investment industry has a phrase for uninvested capital: “cash on the sidelines.” The metaphor reveals how the industry views cash—as a spectator, waiting to get in the game. During the era of near-zero interest rates, a popular refrain emerged: “Cash is trash.” This framing is not just wrong. It…
The 50/50 Rule: Recycling Asymmetry in Speculative Positions
Context: Why Speculative Positions on a Growth Investing Site? This site focuses on growth investing — the careful selection of high-quality compounders that can generate wealth over decades. The core of the approach is finding businesses with durable competitive advantages, high returns on capital, and long runways for reinvestment. But even a disciplined growth investor…
The Paradox of Wealth: Why Survival Beats Optimization (A Manifesto for the Ergodic Investor)
You have spent years building your wealth. You took risks, you optimized, and you won. You have reached the summit. But standing at the top, a strange feeling takes hold: vertigo. Why? Because you intuitively realize that the rules that got you here are not the rules that will keep you here. Traditional finance is…
Beyond the Average: Mastering the Hidden Mathematics of Compounding : A unified framework for leveraging Skewness, Ergodicity, and the Power Law.
Beyond the Average: Mastering the Hidden Mathematics of Compounding A unified framework for leveraging Skewness, Ergodicity, and the Power Law. Posted on December 15, 2025 Investing is rarely a problem of asset selection; it is a problem of mathematical categorization. Most portfolio failures stem from a “Category Error”: treating a volatile asset that requires harvesting…
The Volatility Tax and How to Defeat It: A Mental Model for How to Survive the Maths of the Market
We are all taught the same fundamental truth of investing: Stocks go up over time. We are shown a chart of the S&P 500 moving from bottom-left to top-right and told, “Just buy, hold, and wait.” For the index, this is true. But for individual stocks, this is often a dangerous lie. The reality of…
A Framework for Long-Term Profitable Growth Investing
Investing is a journey that requires a careful blend of financial knowledge, psychological awareness, and a long-term perspective. This essay presents a framework for navigating the complexities of the market and achieving enduring financial success. 1. Foundational Principles 1.1 Long-Term Vision Successful investing is a marathon, not a sprint. It demands a vision that transcends…
The Dynamics of ROE and Revenue: Identifying Great Compounders
In the quest for exceptional investments, one metric stands out as both a guiding light and a rigorous filter: Return on Equity (ROE). However, while ROE is essential, it alone doesn’t tell the full story. The interplay between ROE, earnings growth, and revenue dynamics reveals the true quality of a business—and its potential as a…
Stocks Duration
Short duration or short-term stocks are returning near-term cash to their owners while long duration stocks are expected to return cash, or the greater part of it, later, such as growth, early stage, or not-profitable stocks. In a similar fashion than bonds, rising interest rates will affect long-term stocks more than the short duration ones…