Concentrate to Build Wealth, Diversify to Protect It

Diversify_Alan Stalcup

Lesson #5: Diversify For a long time, I relied heavily on a single strategy I believed in and went all in. It worked. Until it didn’t. It’s impossible to predict the future. No matter how strong the thesis, no matter how compelling the data, no matter how good the track record looks. Markets don’t reward conviction […]

Lesson #4: Everything Works… Until It Doesn’t

Alan Stalcup

Long track records create confidence. Sometimes too much of it. Markets don’t care how long something has worked. They don’t care about your experience, your reputation, or your past success. There are moments when what worked yesterday simply stops working tomorrow. There was a time when payphones were everywhere. Long-distance calling cards were a real […]

Lesson #2: Floating-Rate Debt and High LTVs Run Out of Options Fast

Lesson #2: Floating-Rate Debt and High LTVs Run Out of Options Fast

In a near zero interest rate environment, floating-rate debt and higher leverage can feel like a good choice. When debt is virtually free and you’re focused on maximizing returns, leverage is the way to do it. But the risk is always there, even when it doesn’t feel like it. When rates rise quickly, debt service […]

Don’t Fight the Fed

Don't Fight the Fed

Lesson #1: Don’t Fight the Fed One of the most important investing lessons I’ve learned came in the spring of 2022. We had just closed our first deal with a new institutional equity partner, the first of what was supposed to be multiple deals. Shortly after, the Fed began one of the fastest and most […]