The goal is to reduce the idiosyncratic risk that comes from today’s transforming global political environment and fast technological change.

Over the last fifteen years, index investing has turned into a religion that promises never-ending returns from stocks, no matter how expensive the stock market might be. ‘Buy the dip’ and ‘never sell’ have become this religion’s commandments.

Investors should ignore the debt-to-asset ratio and pay closer attention to interest coverage ratio or debt payoff ratios, which tell a more accurate story about a company’s capital structure.

In the long run a stock price will reflect a company’s (true) intrinsic value. In the short run the pricing is basically random.

Investing is a probabilistic adventure: You assess upside and downside probabilities of a potential investment, and if at the end the balance is significantly favorable, you pull the trigger.

We often manage most of our clients’ money. Many times, it’s all their investments. So we treat it as irreplaceable capital. When you’re 60 and nearing the end of your working years, you can’t really recover from big mistakes.