📖Julian Robertson
Position Sizing Discipline
Size positions based on conviction and risk.
The size of your position should reflect your conviction and the risk involved. Never bet so large that a single mistake can wipe out your portfolio.
🏠 Everyday Analogy
📖 Core Interpretation
Julian Robertson views portfolio construction as risk architecture. Allocation, position sizing, and rebalancing rules determine whether you can stay disciplined across market regimes.
💎 Key Insight：Proper position sizing prevents catastrophic losses.
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❓ Why It Matters
Without portfolio rules, decisions become reactive and concentrated. Sustainable returns come from controllable risk exposure, not one-off bets.
🎯 How to Practice
Set target allocation by risk tolerance, rebalance by rules rather than headlines, and prevent hidden concentration from dominating portfolio behavior.
⚠️ Common Pitfalls
Diversifying superficially without true risk balance
Skipping rebalancing rules and drifting style
Judging portfolio health by short-term returns only
📚 Case Studies
1
Airline Price Wars (1987)
Analyzed brutal fare competition and weak balance sheets across U.S. airlines before the crash.
✨ Outcome：Avoided or shorted several carriers; protected capital as sector suffered heavy losses after 1987 market break.
2
Tiger Management and Asian/Russian Turmoil (1998)
Global Perspective, influenced by Robertson’s macro views, faced losses as Asian crisis and Russian default triggered massive volatility
✨ Outcome：Positioning proved too early; heavy redemptions and losses contributed to the eventual shuttering of Tiger Management in 2000
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