2-1a7a5 Build day by day unless anything fundamental ('the core') changed. Superficial-uncontrollable criteria (e.g., share price) matter less.

Remember the triad between the Plan Structure, the Portfolio Structure, and the Control Structure (e.g., see Ludwig Lachmann and Warren Buffett)

When you are short you might get a recall or get squeezed, and that’s not something you can control. But its uncontrollability has its degrees, and I guess you can short opportunistically to the extent of your knowledge (e.g., see Michael Burry). The temperament is important, but wisdom is about prevention, and in that sense knowledge precedes temperament (IYKYK).develop

Next:

• 2-1a7a6 Mr. Market is there to serve me, never to guide me

Related:

• 5-2a1 You get what you measure

• 3-1a4b4a Financial cycles ≠ Product cycles

  • 2-1a7a1 (1) Increase your productivity; (2) Don’t let your income increase faster than your productivity; (3) Don’t let your debt increase faster than your income

• 2-1a7a2 Assets with actual substance or weight have the best prospects over the long term

  • 2-1a7a3 Ben Graham - ‘Markets are a voting machine in the short term and a weighing machine in the long term’

• What’s under control vs what isn’t

  • E.g., Fed and Powell, price (equity, crypto)

• 5-1b4c Exponential growth feels flat in the beginning, precisely why it’s worth making an extraordinary effort to get it started. You can also follow the Fun Criterion (the latter likely exhausts the former). Consistency is the key.

  • 2-1a1a4b Compounding is usually too slow to notice, making it easier to discount both how much progress and catastrophe are achievable
    • 5-1b4a Amara’s law - we expect too much in the short-run, but too little in the long-run & 3-1d6c Amara’s law modified - we underestimate the importance of consistency in the short-run, but overestimate in the long-run

• QUE5 - Anything fundamental changed vs superficial-uncontrollable metrics