Personalised best practices & glossary

The Maverick

A tailored guide to your financial and wealth personality.

Concepts that are relevant to you

Concentration risk: The risk of having too much of your wealth in a single asset, deal, or sector. High conviction is not the same as high concentration being appropriate. The Maverick tends toward concentration naturally — understanding the specific downside scenarios of concentrated positions is essential.
Correlation: How much different investments move together in the same direction at the same time. A private tech deal and a public tech portfolio may look like different bets but behave as one in a downturn. High correlation means your diversification is less real than it appears.
Due diligence: The process of thoroughly investigating an investment before committing capital — understanding the financials, the team, the market, the risks, and the terms. Mavericks often compress or skip this step when a deal feels right. The deals that feel right and haven't been properly examined are where the expensive losses tend to come from.
Liquidity: How quickly an asset can be converted to cash. Private deals, real estate, and illiquid funds can tie up capital for years. Mavericks often end up with portfolios that are highly illiquid across multiple positions simultaneously — fine when things are going well, a real problem when they're not.
Position sizing: Deciding how much capital to allocate to any single investment relative to your total portfolio before you go in — not based on how good it feels, but based on what you can afford to lose entirely without it affecting your financial life. A systematic approach to position sizing is the highest-leverage discipline a Maverick can develop.
Downside scenario: A clear-eyed analysis of what specifically happens if an investment goes wrong — not just "I lose the money" but what that means for your overall position, your liquidity, and your ability to take the next opportunity. Running the downside scenario before committing is the one step most likely to catch what excitement is hiding.
Net worth: The total value of everything you own minus everything you owe. Mavericks sometimes have a fuzzy picture of their actual net worth because capital is moving fast across multiple commitments. Knowing your precise net worth — updated at least annually — is the foundation everything else sits on.