Sustine et Abstine: The Stoic-derived principle of enduring adversity with unwavering composure and refraining from destructive emotional reactions, preserving inner dignity and character regardless of external circumstances. 这一代人的故事，再不写就没有了。 The stories of this generation — if not written now, will be gone. — 齊邦媛 (Chi Pang-yuan) 齊邦媛 was born in 1924 in Tieling, Manchuria. She died … Read more
Second-level thinking is an investment approach that evaluates not only fundamentals but also the degree to which those fundamentals are already reflected in market consensus, seeking a variant perception that can lead to superior returns. First-level thinking says, “It’s a good company; let’s buy the stock.” Second-level thinking says, “It’s a good company, but everyone … Read more
Margin of Safety is the investing principle of purchasing securities at a price substantially below their estimated intrinsic value to create a buffer against analytical errors or adverse market events, a concept Benjamin Graham adapted from engineering. Confronted with a like challenge to distill the secret of sound investment into three words, we venture the … Read more
Composite Operator is a Wyckoff market abstraction that treats price and volume as the deliberate actions of a single, rational large participant who systematically accumulates positions at lows and distributes them at highs, driving the four-phase market cycle. It is not good enough to know what to do in the market; one must know why. … Read more
Recollected time is Seneca’s concept of intentionally lived moments that we fully own and reflect upon, distinguishing true living from mere busyness. Source: Wikimedia Commons Ita est, Pauline: omnes in hoc dissentimus a natura, quod: vita brevis est, ars longa. Non exiguum temporis habemus, sed multum perdidimus. It is thus, Paulinus: we all disagree with … Read more
Sustine et Abstine (Endure and Abstain): An investment philosophy rooted in Kant’s dual reverence for the external vastness of markets and the internal moral law, teaching endurance of uncomfortable truths and abstinence from self-deception to preserve judgment. Source: Wikimedia Commons Zwei Dinge erfüllen das Gemüt mit immer neuer und zunehmender Bewunderung und Ehrfurcht, je öfter … Read more
Sitting tight: The investment strategy of maintaining positions through market volatility without succumbing to the urge to trade, relying on long-term compounding rather than frequent decision-making. Jesse Livermore, the greatest speculator of the early twentieth century, said it most clearly: It was never my thinking that made the big money for me. It was always … Read more
The Buffett Indicator is the ratio of total stock market capitalization to gross domestic product (GDP), used to gauge whether equities are undervalued (below 75%), overvalued (above 115%), or in bubble territory (above 150%). Source: Wikimedia Commons In a 2001 Fortune interview, Warren Buffett called the ratio of total stock market capitalization to GDP “probably … Read more
The Sustine et Abstine signal grading system is an investment methodology that empirically ranks technical chart patterns by historical win rate and uses those grades in conjunction with fundamental valuation to enforce disciplined, high-probability trade timing. Value investing and technical analysis are usually treated as opposing schools. Graham disciples scorn chart-readers; technicians dismiss fundamental analysis … Read more
Character edge is the sustainable investing advantage derived from personal virtues like patience, discipline, self-mastery, and integrity, which compound over time unlike information or intellectual edges that decay. Every investor wants an edge. Most look for it in information — faster data feeds, better models, insider networks. Some look for it in intellect — higher … Read more