Timeless Principles

Timeless Principles help us stay the course during difficult times.

As this is our first blog post, we will explore timeless principles that helped shape Rhea into the institution it is today. We are not here to reinvent the wheel; we try to emulate the behavior of successful people throughout history. As Niccolo Machiavelli said, "A wise man ought always to follow the paths beaten by great men and to imitate those who have been supreme, so that if his ability does not equal theirs, at least it will savor of it."

The following insights have shaped our ethos at Rhea:

"A civilization is born stoic and dies epicurean." Will Durant

We emphasize disciplined decision-making and resilience for long-term success. Family wealth should be grounded in prudence and patience, not in pursuing short-term gains.

"Just as when ample and princely wealth falls to a bad owner, it is squandered in a moment, but wealth, however modest, if entrusted to a good custodian, increases with use, so our lifetime extends amply if you manage it properly." Seneca

We prioritize a close relationship with the family, emphasizing the role of resource management and developing an Investment Policy Statement together. Our ultimate objective is to facilitate the management of resources in a way that maximizes their long-term potential.

"Time is compounding’s magic, and its importance can’t be minimized. But the odds of success fall deepest in your favor when you mix a long time horizon with a flexible end date—or an indefinite horizon." Benjamin Graham

We maintain a permanent capital base dedicated to long-term investments. Our goal is to build a self-sustaining portfolio that requires minimal maintenance or turnover and can compound over time.

"I imagine many people could have achieved wisdom if they had not imagined they had already achieved it." Seneca

We stay humble and curious.

"It wasn’t brains that made him so rich; it was temperament." Charlie Munger

We remove emotions from our investment process. We use a systematic approach to investing and stay the course.

"There are only two types of investors: those who can’t time the markets and those who don’t know they can’t time the markets." Old Saying.

We do not try to time the market. We want time in the market. We are always invested.

“In 1,000 parallel universes, you want to be wealthy in 999 of them. You don’t want to be wealthy in the fifty of them where you got lucky, so we want to factor luck out of it. I want to live in a way that if my life played out 1,000 times, I am successful 999 times.” Naval Ravikant

We accommodate a range of potential outcomes, acknowledging the world's unpredictability, to remain invested long enough to enjoy the power of compounding. Our emphasis on portfolio durability is the quiet force of our success.

"Invest in preparedness, not in prediction." Nassim Taleb

We don't claim to predict the future. Instead, we maintain a margin of safety by avoiding debt, keeping cash readily available, and adhering to a long-term investment outlook.

"First, Be Lucky. Second, Be Humble." Howard Marks

We understand our position and privilege. Luck has been on our side for generations.

“The four most dangerous words in investing are: this time it’s different.” John Templeton

We do not aim for the highest possible returns. We seek above-average returns that can be sustained over a long period of time.

"I read to increase my knowledge. I read to find meaning. I read for a better understanding of others and myself. I read to discover. I read to make my life better. I read to make fewer mistakes." Gautam Baid

Most of our day is spent reading and reflecting, acting only when necessary. Thoughtful, deliberate action yields the best results.

These timeless principles serve as our compass, guiding us through the complexities of the investment world.