Be Willing to Double Down Decrease Vulnerability to Capital Markets

Prepare for a Catastrophe and Remain Diversified

One of our biggest mistakes was ten years ago going too heavily into emerging-market closed-end funds, which were selling at 25-30% discounts to net asset value. When the Russian debt crisis hit, the NAVs got hammered. It’s one of the first lessons you learn: be diversified enough that if that 1-in-100 event happens, you don’t blow up.