17-10-2023, 01:32 PM
OPMI (Outside Passive Minority Investor) is a pretty lonely affair. So I am not sure if any sort of corporate frameworks would be useful. There are little peers, buddy checks and balances for normally a "One Man Operation".
I thought the best way to mitigate permanent capital loss, is actually to make permanent capital loss. Make them when you have less capital, less leverage and less ego. In essence, when one is younger with less of everything that makes it dangerous to capital losses, there is however better mental flexibility to accept ideas/lessons that conflict with existing ones.
And when we have more capital, more leverage and more ego, hopefully by then, we have attained sufficient wisdom to continue to mitigate such permanent capital losses via learning from other people's mistakes (but they pay for it).
I thought the best way to mitigate permanent capital loss, is actually to make permanent capital loss. Make them when you have less capital, less leverage and less ego. In essence, when one is younger with less of everything that makes it dangerous to capital losses, there is however better mental flexibility to accept ideas/lessons that conflict with existing ones.
And when we have more capital, more leverage and more ego, hopefully by then, we have attained sufficient wisdom to continue to mitigate such permanent capital losses via learning from other people's mistakes (but they pay for it).