“Imagine a demon approached you and declared that you would have to live your life exactly as you have lived it in the past; including the exact same investment experience, with “every pain and every joy”— over and over again, for eternity.”
Will your answer be a “Yes” or a “No” ?
Would you kiss or curse the demon ?
Will you be able to say “ Amor Fati (I Love My Fate)” ?
While it may be easy to answer this in retrospect, our mission is to set you up, pre-emptively, for a “YES”, REGARDLESS OF THE MARKET PATH !!!
Our experience tells us that past returns persist in the present and future via the simple mathematics of compounding. One big loss impacts your portfolio performance in a painfully disproportionate way and it almost never goes away.
Hence, the key here is to avoid “big losses” – those being the biggest detractors of compounding.
More than ever, investors need to optimise risk by investing in such a way that, whatever happens, they can declare, “Thus I willed it !!!” …. what better statement can you think of the function of risk mitigation for an investment portfolio?
Therefore, be-friending volatility and emerging stronger out of uncertain times is the cornerstone of our investment philosophy.
