1.
Value Investing Mental Models for Allocation

2.
Mind’s blind spots <ul><li>Activity & leverage </li></ul><ul><li>Anchoring </li></ul>

3.
Inactivity & Cash as default position 200 100 Row5 100% 1.00 100% 214 107 100 Row 4 46% 2.00 100% 7% 229 114 107 100 Row 3 32% 3.00 100% 7% 7% 245 123 114 107 100 Row 2 25% 4.00 100% 7% 7% 7% 262 131 123 114 107 100 Row 1 21% 5.00 100% 7% 7% 7% 7% CAGR returns Total period Period 5 Period 4 Period 3 Period 2 Period 1 Startin Capital

4.
Cash as a strategy! <ul><li>Buffett’s AAA cheque writing ability </li></ul><ul><ul><li>Waiting for big fat elephant </li></ul></ul><ul><li>Buffett’s Grand-dad’s advise </li></ul><ul><li>Charlie Munger solution – sitting on ass </li></ul><ul><li>Seth Klarman’s cash holdings </li></ul>

5.
Anchoring

6.
Anchoring

7.
Anchoring

8.
Thank you