Capital Reinvestment
Fundamental investing checklist
tip
Invest in systems with antifragile defenses
What is the best way to proportion time and capital between core operations and experimental activities?
Reinvestment
Reinvestment strategy taken from Google.
| Amount | Notes |
|---|---|
| 70% | Core business |
| 20% | Adjacent |
| 10% | Experimental |
Value
- Buy into good businesses
- Follow a process, verify Sources
- Reinvest your dividends
- Watch out for fees
- Have a backup plan
Things to learn as an investor
Psychology
Understand human nature
- Delay gratification
- Time beats timing
- Avoid excessive risk
Risk
ESG
Companies need to be ESG compliant.
Enviromental
- Climate risks
- Natural resources scarcity
- Pollution and waste
Social
- Labor issues
- Product liability
- Data security risks
- Stakeholder opposition
Governance
- Corporate governance
- Board equality
- Board effectiveness