Most of your returns are going to come from these 3 categories:

• Extremely cheap securities

• Extremely good companies

• Events

Huge returns will usually come from investments that check 2 or more of these boxes.

The stuff outside these 3?

It’s kind of like K-9 off-suit in Texas Hold’em.

Sure, it can win. But not that often and not that much.

Now go through your portfolio. What % of it is outside these categories right now?

Be honest. No, not with me, with yourself.