## My Personal Framework for outperforming the market through research and concentrated capital deployment
Note:
This is my own personal investing system. This is not gospel, it is not a known and accredited investing framework. It is not without risk. However this is how I have learned to invest and I have significantly outperformed the market with this framework during bull cycles.
It is not for everyone and it is higher risk than more traditional and diversified strategies. When drawdowns come in a concentrated portfolio it can be fast and aggressive, and you need to appropriately weigh that risk.
My Investing Origin Story: $50k to $800k in 6 Months
I didn’t realize it until recently, but for the last four years, I have been trying to recreate one specific moment in time.
My first massive win came during the SPAC craze of 2020 and 2021. For those who weren't there, a SPAC (Special Purpose Acquisition Company) is essentially a "blank check" company that lists at $10. Until they merge with a target company, that money sits in a trust. That means no matter what happens, the stock has a hard floor at $10.
I realized the math was broken in my favor. I could park a massive amount of capital in a SPAC trading at $10.80. My downside was 80 cents (about 8%). My upside? If they announced a merger with a hot company, the stock could go to $20, $30, or $50.
I started using SPACs led by big Wall Street or Silicon Vally leaders as bank accounts. Park a large amount of money, wait for the announcement, I make 40% in a day.
Then, I discovered Warrants. These were essentially long-term call options attached to the SPACs. There was a bit more downside, but they gave me massive leverage on that upside.
I took $50,000 and turned it into $800,000 in six months.
I wasn't a genius; I had just found a perfect asymmetric setup. High floor (guaranteed by the trust), unlimited upside (driven by the mania), and leverage (via warrants).
When the SPAC bubble popped (and I lost 200k in 4 days, taking me from $1M to $800k), that easy money vanished. But the principle stuck with me. I have spent the last four years refining a strategy to find that same risk/reward profile in the regular market.
This is how I do it.
1. Defining Assymmetic
In the investing world, "asymmetric" describes a scenario where the relationship between risk and reward is completely disconnected: in your favor.
My Definition: An asymmetric investment is a setup where the stock’s price floor is high because it is already trading at a compressed multiple relative to its peers. The downside is hypothetically mathematically limited because the stock is already "on sale." Meanwhile, the upside ceiling is virtually uncapped due to a specific catalyst the market is ignoring.
• Symmetric Trade: You bet $1 to make $1. (Coin flip).
• Asymmetric Trade: You bet $1 to make $10, and if you lose, you only lose $0.20 because you bought the dollar for 20 cents from a guy who didn't understand how much a dollar is worth....
We aren’t just looking for growth. We are looking for mispriced growth. We want stocks where the market has made a mistake.
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