"The key word is calibrate." - Howard Marks
...Investing is not black and white, in or out, risky or safe. The key word is calibrate. The amount that you have invested. Your allocation of capital among the various possibilities. The riskiness of the things you own. All these should be calibrated along a continuum that runs from aggressive to defensive.
Howard Marks
Coming from guru Howard Marks, the words and meanings just come alive much better. Investing is never binary. There are always linger questions and there is always another answer. Futures and outcomes are always a set of probabilities, how do we pick stocks with the lower probability of loss, how do we size our bets, how do we time our exits, these are the important details.
Some quick rule of thumbs I have established over the years:
1. Size your initial bet small, so that you ...
