Alas, life has other plans and I've been way too distracted to write more haha. Perhaps one day.
I have not. In short, it has to do w owning companies I like, at good enough return potential, rather than owning what I think are max return oppt.
Also just being lazy on portfolio mgmt. I used to sweat every bp. Now I'm far lazier / relaxed about it, on both trading slippage and on taking advantage of vol.
I like to think of myself as a long term investor, but at some point I slowly slip into "maximizing short term IRR" again, trading quarertly reports, buying dips with the intention of selling it a couple of days later, etc etc
In the footnote you write these returns are to cover "living expenses + MoS".
1. What do you mean by MoS here (see q 3)?
2. How do you offset inflation?
3. You do not aim to grow your asset base? I.e. so that your withdrawal rate over the LT can go from say 4% to 1%. Which would I think help optimal and "less frightful" investing, i.e. you will not be completely paralysed by deploying capital at attractive albeit volatile IRRs (many folks living from their capital suddenly become irrationally defensive, foregoing IRR they used to generate in their PA when employed in a cushy and well-paid underperforming LO hahah
Bump to encourage you to write more :)
"This has certain portfolio management implications, which I will detail in a separate post." => has this ever been posted?
Alas, life has other plans and I've been way too distracted to write more haha. Perhaps one day.
I have not. In short, it has to do w owning companies I like, at good enough return potential, rather than owning what I think are max return oppt.
Also just being lazy on portfolio mgmt. I used to sweat every bp. Now I'm far lazier / relaxed about it, on both trading slippage and on taking advantage of vol.
Your perspective is a good reminder, thanks!
I like to think of myself as a long term investor, but at some point I slowly slip into "maximizing short term IRR" again, trading quarertly reports, buying dips with the intention of selling it a couple of days later, etc etc
In the footnote you write these returns are to cover "living expenses + MoS".
1. What do you mean by MoS here (see q 3)?
2. How do you offset inflation?
3. You do not aim to grow your asset base? I.e. so that your withdrawal rate over the LT can go from say 4% to 1%. Which would I think help optimal and "less frightful" investing, i.e. you will not be completely paralysed by deploying capital at attractive albeit volatile IRRs (many folks living from their capital suddenly become irrationally defensive, foregoing IRR they used to generate in their PA when employed in a cushy and well-paid underperforming LO hahah