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Sun Tzu for Investors
Investing and war share a temperament: patience, capital preservation, position sizing, and knowing when not to act. Sun Tzu’s discipline translates naturally into portfolio construction and risk management. Historical strategy, not financial advice.
Sun Tzu lessons for this
“If you know the enemy and know yourself, you need not fear the result of a hundred battles.”
Sun Tzu · Chapter 3: Attack by Stratagem
“There is no instance of a country having benefited from prolonged warfare.”
Sun Tzu · Chapter 2: Waging War
“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.”
Sun Tzu · Chapter 4: Tactical Dispositions
“In war, the way is to avoid what is strong and to strike at what is weak.”
Sun Tzu · Chapter 6: Weak Points and Strong
“He who is prudent and lies in wait for an enemy who is not, will be victorious.”
Sun Tzu · Chapter 1: Laying Plans
“If you know the enemy and know yourself, your victory will not stand in doubt; if you know Heaven and know Earth, you may make your victory complete.”
Sun Tzu · Chapter 10: Terrain
Put it into practice
Sun Tzu’s strategy is only useful if you actually use it. Try this small loop the next time investors shows up:
- Read the situation. Gather information about yourself, the other side, and the environment before you commit.
- Choose your ground. Avoid the other side’s strength and strike where you have an advantage.
- Act with timing. Move fast when the moment is right, and wait when patience is the advantage.