Simplify and Conquer
The François Rochon Way.
Would your portfolio have performed better in 2025 if you had been forbidden to touch it since December 31, 2024?
For many investors, the answer is yes. The longer the period, the higher the odds that the answer becomes “yes.”
That’s because the distribution of opportunity costs is far more asymmetric than the distribution of capital costs.1
Translation: thousands of hours analyzing companies and sectors, writing theses, building valuation models. All that, only to destroy value in the end.
Incredibly frustrating, isn’t it? But what if it’s actually liberating?
This phenomenon stems from a very specific property: the quality of the output doesn’t directly depend on the quality and quantity of the inputs.
In our investing world: performance doesn’t depend on hours worked. When you think about it, that’s an extremely rare phenomenon in nature. But that’s exactly what makes investing so unique, and so liberating.
From that property comes an incentive with incredible power: simplify, simplify, an…
