Generational step change?!
This note covers the fast-moving, wide-ranging, and wild scenarios at the intersection of macro, geopolitical, and market movements. The underlying
INSTRUMENTS PANEL: THEMES
5 min read
“Make everything as simple as possible but no simpler” Albert Einstein
“Simple can be harder than complex.” Steve Jobs
One of the aims of investing is to find and hold instruments that provide the 'purest' exposure to the preferred company or thematic. Then have the patience for the markets (crowd of investors) to respond to those identified value drivers and the ‘newly understood and accepted’ information that results in a move in the price.
Corporate bankers can make (a lot of) money by financial engineering and complicated structures.
Investors should do exactly the opposite and construct concentrated but diverse portfolios with security instruments that are simple, well understood, transparent, and easily identifiable and explainable for their risk management and return generation characteristics.
The second essential element is then to size those exposures correctly.