16 Comments
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Amrita Roy's avatar

Great framework to build a rock solid portfolio. Really enjoyed reading this.

Six Bravo's avatar

Glad you enjoyed it, Amrita. We hope it’s helpful.

derek's avatar

Well done. Thanks.

Six Bravo's avatar

Why thank you, Derek.

John Huber's avatar

Really thought provoking post. Thanks for sharing. I think of my portfolio in a similar way with two main categories of investments.

Six Bravo's avatar

Our pleasure, John. We’re happy you found it thought provoking.

Michael Kandolin's avatar

This was fantastic guys, thank you for putting it together

Six Bravo's avatar

Absolutely. Thanks for the encouraging words, Michael.

Douglas Hager's avatar

It appears you follow Horizon Kinetics quite a bit. The name overlap is obvious. I don’t have a problem with that. It’s just an observation. I actually think TRC, which I only know about because of them, is a classic asymmetric situation. I took a 1% position in the last few months. If residential housing is ever allowed there in the numbers they propose, it’s worth many multiples. Current market cap of $436 million is a joke if that transpires. However, that may never happen in my lifetime given it’s in CA. Don’t think you can size up on that one.

Six Bravo's avatar

Astute observation. We’d be fools not to learn from Stahl and Co.

We agree with your thoughts on TRC. It could definitely fit into the asymmetric bet category. We have not dove too deep into it out of respect for CA crazy.

Douglas Hager's avatar

I appreciate the reply. I really love their stuff. Always thought provoking. Listened to the 3rd quarter review the other day. The written material was not yet posted on the website when I checked earlier today. It was the least stimulating call I’ve sat through, to be honest.

Six Bravo's avatar

Interesting. We’re working through the third quarter commentary now.

Douglas Hager's avatar

I guess I should have checked again prior to my comment. My bad.

Mihail Stoyanov's avatar

Excellent write-up.

I use a similar framework based on company fundamentals, value, timing (technical analysis and events), and big-picture tailwinds (macro and geopolitics).

In three columns, I divide my ideas according to their probability of being right and the position's risk-reward ratio. Then, I calculate fractional Kelly and develop a position-building/exit plan.

Six Bravo's avatar

Thanks for sharing that, Mihail! Also, just want to say, we’ve really enjoyed your work after recently finding you. Nice job.

Mihail Stoyanov's avatar

Thanks for your kind words. They mean a lot to me.