Newsletter October, 2025

A lot has been written on how to pick winning stocks, but far less on two equally critical aspects: portfolio construction and execution strategy. We recently came across an insightful book, The Art of Execution by Lee Freeman-Shor. One of its core lessons is this: investing success is not just about being right most of the time—it’s about how you act when you’re wrong or right. When a stock corrects despite strong business performance, the best investors often double down. When a stock rallies, they ride the trend while periodically booking profits (i.e., rebalancing).This disciplined approach can significantly accelerate portfolio returns, especially since markets rarely move in a straight line, even though performance is often judged point-to-point.