The Resolute Way: Our 25 Principles

“We hope this list may help aspiring investors learn from our experiences.”

  1. Be a Long Term Investor
    Short-term price fluctuations are generally unpredictable.
  2. Have a Flexible Investment Style
    As any investment style becomes too popular, it becomes less effective.
  3. Actively Look for Ideas
    We find our best ideas; they don’t find us.
  4. Buy Only The Best Ideas
    We prefer to buy only our best ideas.
  5. Outperform by Being Different
    To have a chance of outperforming the indices, invest differently than the indices.
  6. Filter out the Noise 
    Use only information that is relevant.
  7. Hyperrealism is a Powerful Tool
    Recognize the world for what it is.
  8. Skepticism is a Virtue 
    Always be prepared to question the official narrative.
  9. Free Markets — An Outdated Concept from the Twentieth Century
    Understand the motives and means of the players.
  10. Think Like a Fiduciary and Deal with Others Who Do 
    Customers should NOT be treated as counterparties to be exploited.
  11. Corporate Governance Is Key 
    Too many boards focus on how to enrich themselves.
  12. “Skin In The Game” 
    We prefer boards to have their incentives aligned with stakeholders.
  13. A Good Card Player Does Not Show His Hand
    Confidentiality is essential.
  14. Being Small is an Advantage
    It is easier to outperform being small.
  15. Know Your Limits 
    It is just as important to know what you don’t know as it is to know what you know.
  16. Stay Humble or the Market Will Make You Humble
    Do not attach your ego to any investment idea.
  17. Espouse Radical Honesty
    Strive to work with honest people. Above all be honest with oneself.
  18. Too Much Emphasis is Placed on Precision
      We don’t need exact numbers or complex models to make decisions.
  19. You Don’t Have to Succeed by being Original
    You succeed by being right.
  20. Short Term Volatility is not Synonymous with Risk
    The obsession to reduce volality can impair long-term performance.
  21. Be a Contrarian
    Too many investors prefer to fail conventionally than succeed unconventionally.
  22. Look at Track Records 
    Many prominent financial advisors have no successful investing track record.
  23. Do Your Homework
    Check facts with evidence-based observations, then make decisions based on facts.
  24. Be Thrifty 
    Moderate costs facilitate moderate fees. Moderate fees facilitate performance.
  25. Critical Thinking Skills Are Paramount 
    Rote learning has little to do with the critical thinking skills needed to be a successful investor.