Nvidia and the semiconductor sector are a classic capital-cycle story: demand creates too much supply, and a boom leads to a bust.

Apparent catalyst absence creates undervaluation. Wall Street’s short-term orientation causes undervalued stocks lacking near-term catalysts to get dumped.

A CEO’s responsibility is to create shareholder value. But a CEO’s job is to achieve that through earnings and increasing the moat around the increasing return on capital, growing business; not through stock manipulation.

To know my circle of competence, to know where I’m the strongest.

Complex systems are full of interdependencies — hard to detect — and nonlinear responses.

Covered call strategies (selling calls against owned stocks) make sense only when call compensation is adequate and investors aren’t forced to maintain overvalued stock positions long-term. Used correctly, options provide terrific hedging and conviction amplification.

What I call the Cowardly Lion market, whose occasional bursts of bravery lead to stock appreciation, but are ultimately overrun by fear that leads to a subsequent descent.

Cyclical bull markets teach us not to sell, while cyclical bear markets teach us not to buy. If you let the market tell you what to do, you have no process.