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| Definition of “Risk” | Odds of permanent capital loss | Beta, tracking error, near-term underperformance | |
| Definition of “Growth” | Intrinsic value growth, durable moats, compounding machines | Revenue and earnings growth | |
| Value vs Growth | Margin of safety: invest at the intersection of growth and value | Mutually exclusive | |
| Intrinsic Value | Scenario-weighted estimate of fair value based on a range of potential outcomes | Price target based on most probable outcome | |
| Time Horizon | ~ 5 year average holding period | “outperform this year,“ < 1 year | |
| Concentration | 25 – 50 positions | > 100 holdings | |
| Decision Making | Students of behavioral finance, exploit manic/depressive nature of the market, aligned incentives | Less rational due to internal and external pressures |
OUR VARIANT PERSPECTIVEjeni2025-08-08T18:29:53+00:00

