Reading Time: 3 minutes First published in Family Capital. “It is advisable for one that he should divide his money in three parts, one of which he shall invest in real estate, one of which in business, and the third part to remain always in his hands.” – The Talmud This passage appears in a record of debates between … More Have asset allocations changed in 2000 years?
Reading Time: 3 minutes As a runner, I’ve had my fair share of calf/knee aches and pains, usually it seems pretty clear to me is that what is needed is a good sports massage to work out the tension. I book into see a good physio, but imagine my frustration when a short while later I am balancing on … More Investors: Think like a Physiotherapist
Reading Time: 6 minutes In the 1990’s competitive swimmers got very serious about swimming large distances underwater at the start of races. This culminated most famously in Russian Denis Pankratov winning the 100m butterfly at the Atlanta olympics by swimming more than half of the first length underwater and breaking the world record. Swimming’s governing body, FINA, decided understandably … More When the Rules Change
Reading Time: 4 minutes The internal-rate-of-return is the traditional way of measuring returns in private markets (where cash-flows occur into and out of partnerships) but its shortcomings as a measure are one big reason to be wary of private markets performance, more on that here. It can be a bit like comparing apples with squirrels. One of several issues … More Apples and Squirrels – IRRs vs CAGR
Reading Time: 5 minutes It’s a psychological fact that market falls are almost always painful. But stock market rallies can be almost as hated if they take a lot of people by surprise which is the same as saying the narratives in play against it are stronger or more prevalant than those supporting it. The bounce we’ve been in … More A reason this equity rally might not be overdone
Reading Time: 5 minutes First published in Family Capital As public markets shrink investors have many reasons to focus on long-term returns in private markets, but many challenges await It has happened so slowly you may not have noticed, but the public markets are in something of a crisis. The number of listed companies in the US which today … More The rise and rise of private markets
Reading Time: 4 minutes Contrary to first impressions, big wave surfing is all about risk management. In the late 1980’s legendary Hawaiian big wave surfer Brian Keaulanu looked at the new models of jet ski that were being produced like the Yamaha Waverunner that allowed the rider to sit down, and had a flash of inspiration. He realised that … More We’re all risk managers now
Reading Time: 9 minutes No plan survives first contact with the enemy Herman Von Mutke the Elder During a speech in November 1957 Eisenhower told an anecdote about the maps used during U.S. military training. Maps of the Alsace-Lorraine area of Europe were used during instruction before World War I, but educational reformers decided that the location was not … More Planning once you’ve been punched in the mouth – 3 more questions
Reading Time: 6 minutes There are decades when nothing happens, and there are weeks when decades happen. Lenin Yes, so in case you are wondering we ARE in the Lenin quotes phase of this crisis (Warren Buffet quotes was first week of March, Charlie Munger second week of March and Peter Lynch third week of March, since you asked). … More Three questions we are all asking in this market
Reading Time: < 1 minute Re-affirm your investment objective ( for framing, context) and your process 2. Run through each of your holdings and remind yourself why you own it 3. Check your mandates are performing as expected given conditions 4. Remind yourself how often drawdowns usually occur – put things into historical context 5. Count how many of the … More 15 productive things investors can do in a market downturn
