Love the Lego brick framing. In investing, portfolios work the same way — cohesive building blocks that stand alone, but snap together into something scalable. The danger comes when your ‘quanta’ are too tangled to evolve.
I like that framing. The tricky part is knowing when the “quanta” are still flexible building blocks and when they’ve become an interlocked mess. In your experience, what signals tell you it’s time to untangle before scalability is lost?
Three warning signs I've learned to watch for: First, when I can't explain a position's role in one sentence without saying 'but also...' Second, when selling one holding forces me to reconsider three others due to tax implications or sector exposure. Third, when I start making excuses for keeping something instead of reasons for owning it. My UNP hold was a perfect example of that last one.
Love the Lego brick framing. In investing, portfolios work the same way — cohesive building blocks that stand alone, but snap together into something scalable. The danger comes when your ‘quanta’ are too tangled to evolve.
I like that framing. The tricky part is knowing when the “quanta” are still flexible building blocks and when they’ve become an interlocked mess. In your experience, what signals tell you it’s time to untangle before scalability is lost?
Three warning signs I've learned to watch for: First, when I can't explain a position's role in one sentence without saying 'but also...' Second, when selling one holding forces me to reconsider three others due to tax implications or sector exposure. Third, when I start making excuses for keeping something instead of reasons for owning it. My UNP hold was a perfect example of that last one.