Flexibility is Necessary during Volatile Times

In periods of rapid change in liquidity and economic conditions, the odds that we’re simply wrong about our estimates of companies’ near-term fundamentals are higher than average. As a result, we’re more focused today than ever on maintaining flexibility – through cash levels and buying power – and in sizing our bets according to the medium to lower-confidence environment we’re in. We’re not necessarily making fewer bets, but they’re smaller in size.