How do you handle market volatility?
Our approach to managing risk and volatility.
Market volatility is inevitable, but our approach helps manage it in several ways:
Long-term Focus
We invest in high-quality companies with durable competitive advantages. Short-term volatility becomes less relevant when you own pieces of excellent businesses.
Conviction-based Investing
Because we know our companies well, we can act rationally during market stress. Volatility often creates opportunities to add to positions at attractive prices.
Diversification Across Time
While we concentrate our holdings, we diversify across different time horizons and market cycles through our systematic rebalancing process.
Remember: volatility is not the same as risk. The real risk is permanent loss of capital, which we work to avoid through careful security selection and position sizing.