TWO PATHS TO PROFITABILITY PART 1

01/10/25 Prospero.Ai Investing (184th) Edition (Midweek)

There's a lot of debate in the world of trading and investing regarding the best approach to long term profitability. Most of us have heard stories of the market guys of old that became wealthy, simply by putting money in the S&P 500 and let it ride over the course of time. And make no mistake, faithfully putting money in an ETF or a blue chip growth stock like Apple and leaving it alone has thus far through history been a reliable way to make steady and solid returns. But the reality is that "buy and hold" investing is not the only way to make good money in the market; and we'd like to argue that there are certain environments and situations where making adjustments is the wise and prudent choice. Our CEO, George Kailas has taken a different approach over the life of Prospero. He cut his teeth as a dyed in the wool, Warren Buffett style, buy and hold, value investor. But over the course of his three years as CEO of Prospero, he's lived through 3 very different markets. In 2022, we experienced a fairly drastic bear market. In 2023, we experienced a strong Bullish run. In 2024, we've seen some incredible months of Bullish advance, intermingled with months of incredible up and down volatility. George's argument is that with each market cycle, a different approach is often the best way forward. I guess his win rate and % beat of the S&P speaks for itself. In our Sunday letter, we're going to do a deep dive into the different approaches to making money in each market and why a buy and hold approach may not always be the best path forward. But now a word from our CEO.

A WORD FROM OUR CEO

Another volatile week but we aren’t pressing and treading water well. We are currently beating the S&P 500 by 100% annualized, with a win rate of 72% against SPY benchmarks.

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TWO PATHS TO PROFITABILITY PART 1

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