Sound Investment Venture

What is a sound investment venture?

An entity that deploys capital repeatedly to leverage market volatility and create a flywheel with cash generation.  

Four key components: 

1. Anti-fragile capital structure-It is a combination of a sizable cash ratio, longevity of the capital, and how it is incentives to flow in when rare opportunities occur and flow out when there is none.

2. A repeatable, scalable investment strategy- You can rinse and repeat any strategy (Value, Growth, Thematic, Short, Spinoffs, etc.) while increasing the capital deployed over time.

3. Consistent revenue - generating consistent cash flow not affected by market volatility to support, protect or grow the investment strategy and scale it.

4. Operational leverage - is when a business has additional access to resources due to its service or product. In our case, further access to cash for a service or product provided. This leverage is not affected by market conditions, and you can't get a margin call due to using it. Cash can be used primarily to enhance the investment strategy when everything is working well.