Part 6/12:
A pivotal concept introduced is rotation, exemplified through a metaphor involving elevators—buying promising assets early, riding them up, and then shifting into newer, faster-growing opportunities.
The "Faster Horse" philosophy advocates continuously reallocating capital into emerging assets poised for exponential growth. For instance, when a stock like Meta or Nvidia peaks in valuation, profits are taken or shifted into newer ventures like Solana, MicroStrategy, or Tesla before they reach their ceilings.
How to Identify When to Rotate?
By tracking asset performance relative to their potential, investors are advised to:
Buy early during markdowns (e.g., Solana at $8).
Scale into positions with high upside potential (e.g., Tesla at $161).