Objective is to invest taking concentrated bets for the long term, following altering balance in the aggressiveness-to-defensiveness continuum, which is attained through diversification of cash flow streams, choice between predictable vs. growing cash flow streams and cash calls (pooled vs. model portfolio).

Cannot know the ‘macro future’ (economies, markets or geopolitics with any reasonable certainty
1. Macros matter, but mining it as investment edge is nearly impossible
2. Share price growth more a function of earnings growth

Portfolio optimization(balance of aggressiveness /defensiveness) is critical
1. In long-term, trading is a zero sum game
2. In the short-term however, things fluctuate between ‘flawless’ to ‘hopeless’
3. Balance is adjusted based on earnings / credit / investors’ psychology cycles

Risk is not volatility of returns
1. It is (a) likelihood of permanent loss of capital and (b) opportunity risk

Creating wealth should be a source of pleasure
1. Taking too much risk interferes with that