Four components to selecting a position: within circle of competence, outstanding moat, outstanding managment, at a good or fair price.
Maximum position size at cost is 5%.
Arrogance and concentrated bets were downfall in early career. Humility, open-mindedness, and risk management have contributed to recent returns.
Final 7-15 minutes: trend following hedging strategy. As long as 40 day EMA is above 120 day EMA on the NDX = uptrend. When 40 day EMA crosses below 120 day EMA then downtrend. Within downtrend when 5 day EMA is below 20 day EMA then beta-hedge entire portfolio (e.g. if portfolio is $100 and portfolio beta is 1.4 then hedge $140). When 5 day EMA goes back above 20 day EMA removes hedges. Do this until 40 day EMA goes back above 120 day EMA and triggers the uptrend.