10 Tips about Position

We don’t generally buy full positions on day one – we’ll buy a half position, watch it trade, live through a quarter or two of earnings...
We don’t have many rules, but when a stock is down materially relative to its peer group we assign another analyst to formally review it and then...
One reason focused investing works is that you box yourself into what I think is a very positive corner. You force yourself into the position where...
We made a few more general mistakes when we started our own firm. One was that we told ourselves that we should be hedging against macro concerns when...
There are no “holds.” Every day you're either willing to buy more at the current price or, if you aren't, you should redeploy the capital to...
The biggest payoffs go to those holding the best cards. Getting into that position requires patience, discipline and an unnatural willingness to hoard...
We do cap a given industry’s exposure at 25% of the portfolio, which is a check on the innate lack of humility we often have as investment managers....
One thing we’ve had to get better at over the years is sizing our positions to our conviction level. That may sound obvious, but the only bad year...
What works for us is between 10 and 20 positions. Owning more than 20 stocks, it’s too hard to follow the companies very closely, and a big winner...
Our ideal is 25 roughly 4% positions, though the reality varies around that. We believe concentration is tied to outperformance, but many...