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It is all about capital allocation 

Risk management is a critical trait for successful investing which goes beyond traditional asset allocation and market diversification.

In our view, there are only two components in any portfolio. A risky segment which includes all securities except cash/cash equivalents. The second one being cash and cash equivalents like high quality liquid money market funds and bank deposits.

Most investors underestimate the merit of holding money market funds in a portfolio. Remember that they alone can protect your capital and provide it after market sell-offs. Your profit and IRR depends to a large extent on how low you can buy and its probability of success

This is where legendary investors standout from the crowd and are able to deliver performance through their outstanding capital allocation techniques.

Our objectives

Our primary objective is to enable any discerning investor, irrespective of portfolio size, realize that market noise and emotional factors can cause serious mistakes in capital allocation leading to unwanted outcomes. 

Barring strong secular uptrends, the most juicy opportunities to buy almost invariably occur during temporary market dislocations and adverse market cycles. Unfortunately, most investors pass these opportunities either having used up all their available cash or lack conviction distracted by market noise.

While truly long-term investors weather market fluctuations easily and accumulate wealth, shorter-term investors need to master risk based capital allocation and profit booking as neither expert level forecasting nor timing tools can ensure success consistently.

Risk management
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