Seek Players Who Will Make the Best Team Rather Than the Best Players.

ability to build teams.

"So tell me, Ray, what are the percentages you would put in stocks? What percentage in gold? and so on."...
"First, he said, we need 30% in stocks (for instance, the S&P 500 or other indexes for further diversification in this basket)...
"Then you need long-term government bonds. Fifteen percent in intermediate term [seven- to ten-year Treasuries] and forty percent in long-term bonds [20- to 25-year Treasuries]."...
He rounded out the portfolio with 7.5% in gold and 7.5% in commodities...
Lastly, the portfolio must be rebalanced. Meaning, when one segment does well, you must sell a portion and reallocate back to the original allocation. This should be done at least annually, and, if done properly, can actually increase tax efficiency. p390"

Insist that Members of Your Team Share the “Ball” — Information, Ideas, and More.

As practiced, diversification makes very little sense for anyone that knows what they’re doing. Diversification is a protection against ignorance. If you want to make sure nothing bad happens to you relative to the market, sure you should diversify. There's nothing necessarily wrong with that...but in our view, true diversification is simply a confession that you do not truly understand the businesses that you own. If you find just 3 wonderful businesses in your lifetime, you'll get very rich.

diversify across time. And that’s what dollar-cost averaging does for you.

The real payoff of asset allocation comes when you figure out the right mix of how much of your money you keep safe and how much you’re willing to risk to get greater rewards and have the potential to grow faster.

When you can't win by being better, you can win by being different. By combining your skills, you reduce the level of competition, which makes it easier to stand out. You can shortcut the need for a genetic advantage (or for years of practice) by rewriting the rules. A good player works hard to win the game everyone else is playing. A great player creates a new game that favors their strengths and avoids their weaknesses.

By recruiting a good team and eliminating as much Friction (discussed later) as possible, you’ll achieve the results you’re seeking.

The key ingredient to stardom is the team.

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

Characteristics of a Team Player We all fit into different niches. Each of us must make the effort to contribute to the best of our ability according to our own individual talents. And then we put all the individual talents together for the highest good of the group. Thus, I valued a player who cared for others and could lose himself in the group for the good of the group. I believe that quality makes for an outstanding player. It is also why the best players don’t always make the best team. I mean by this that a gifted player, or players, who are not team players will ultimately hurt the team, whether it revolves around basketball or business. Understanding that the good of the group comes first is fundamental to being a highly productive member of a team.

Third, they could utilize a risk-parity portfolio. Remember, this is a very different approach than just balancing the dollar amounts you have invested in assets — which is the basic diversification strategy that almost everyone else in the industry utilizes. And it’s a strategy that anyone can implement.

The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don't play together, the club won't be worth a dime.