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Capital Allocation

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.

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​