Principles & framework
The “constitution” layer: before opening a market app, clarify goals, horizon, circle of competence, and discipline. This chapter is about how to decide, not ticker picks.
Structure
| Doc | Contents |
|---|---|
| Investment framework | Goal tiers, circle of competence, workflow, buy/sell checklists |
| Discipline & sizing | Position tiers, add/trim rules, stops, rebalancing |
Why principles come first
Without a framework, two errors show up often:
- Treating short-term noise as information—headlines and daily moves are not new facts by default.
- Research without action rules—lots of reading, no clear buy/sell conditions.
Deliverables here: a one-page investing constitution + two checklists (see framework and discipline).
How this chapter connects
flowchart LR
P[Principles] --> A[Assets]
P --> M[Macro & industry]
A --> B[Behavior & review]
M --> B
- Assets & instruments: tools and screening under these constraints.
- Macro & industry: cycle stage → adjust equity ceiling and sector exposure.
- Behavior & review: check whether discipline was actually followed.
Personal guardrails (example—edit as needed)
- No leverage; no structured products I cannot explain.
- Single non-index position ≤ 15% of total equity (see discipline for details).
- Every buy must have: core thesis + falsification triggers + intended holding period.