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Capital Reinvestment

Fundamental investing checklist

The best way to win is not to lose.

Mantra

Invest in systems with antifragile defences

What is the best way to proportion time and capital between core operations and experimental activities?

Google Strategy​

Reinvestment strategy taken from Google.

AmountNotes
70%Core business
20%Adjacent
10%Experimental

Value​

  1. Buy into good businesses
  2. Follow a process, verify Sources
  3. Reinvest your dividends
  4. Watch out for fees
  5. Have a backup plan

Things to learn as an investor

Psychology​

Understand human nature

  • Delay gratification
  • Time beats timing
  • Avoid excessive risk

Risk​

Risk analysis

ESG​

Companies need to be ESG compliant.

Blackrock on ESG Integration

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

Follow​