What Martial Arts Taught Me about Investing

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The protection of capital  is the foundation upon which the growth of capital is built.  

Getting the risk level right is 90% of success.  This is where a relationship focus to understand a client's personality helps to ensure a proper investing posture that is neither too conservative nor too aggressive for where they are on their specific journey.  Additionally, we seek to properly use all fundamentally sound investing tools including consistency with the investment process, put options, owning bonds where appropriate and when puts are too expensive (e.g. VIX over 25), and humbly yet opportunistically striking the right balance between active management and diversification.  

You can't cram for a fight.  The Chinese bamboo tree spends the first 4 years growing roots into the ground while nothing is visible on the surface.  Then, it will grow 90 feet in one year.  In the same way, consistency in saving capital and the investment process is key to success in investing.  Don't rebuild the plane in the air.

"What do you mean stay relaxed??  He's trying to punch me in the face!!"  

As counterintuitive as it is, it is critical to stay relaxed when your fighting.  Doing so allows you to stay composed and see what's coming to defend yourself as well as spot the openings and opportunities.  Staying tense burns energy that you need for what is to come.

With investing, it is critical to keep your composure and stay relaxed.  This is important for both emotions of fear and greed.  Again, staying consistent during turbulence and times of exuberance is key to successful investing.