The Resolute Way: Our 25 Principles
“We hope this list may help aspiring investors learn from our experiences.”
- Be a Long Term Investor
Short-term price fluctuations are generally unpredictable. - Have a Flexible Investment Style
As any investment style becomes too popular, it becomes less effective. - Actively Look for Ideas
We find our best ideas; they don’t find us. - Buy Only The Best Ideas
We prefer to buy only our best ideas. - Outperform by Being Different
To have a chance of outperforming the indices, invest differently than the indices. - Filter out the Noise
Use only information that is relevant. - Hyperrealism is a Powerful Tool
Recognize the world for what it is. - Skepticism is a Virtue
Always be prepared to question the official narrative. - Free Markets — An Outdated Concept from the Twentieth Century
Understand the motives and means of the players. - Think Like a Fiduciary and Deal with Others Who Do
Customers should NOT be treated as counterparties to be exploited. - Corporate Governance Is Key
Too many boards focus on how to enrich themselves. - “Skin In The Game”
We prefer boards to have their incentives aligned with stakeholders. - A Good Card Player Does Not Show His Hand
Confidentiality is essential. - Being Small is an Advantage
It is easier to outperform being small. - Know Your Limits
It is just as important to know what you don’t know as it is to know what you know. - Stay Humble or the Market Will Make You Humble
Do not attach your ego to any investment idea. - Espouse Radical Honesty
Strive to work with honest people. Above all be honest with oneself. - Too Much Emphasis is Placed on Precision
We don’t need exact numbers or complex models to make decisions. - You Don’t Have to Succeed by being Original
You succeed by being right. - Short Term Volatility is not Synonymous with Risk
The obsession to reduce volality can impair long-term performance. - Be a Contrarian
Too many investors prefer to fail conventionally than succeed unconventionally. - Look at Track Records
Many prominent financial advisors have no successful investing track record. - Do Your Homework
Check facts with evidence-based observations, then make decisions based on facts. - Be Thrifty
Moderate costs facilitate moderate fees. Moderate fees facilitate performance. - Critical Thinking Skills Are Paramount
Rote learning has little to do with the critical thinking skills needed to be a successful investor.
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