Alpha on Nothing

Wealth Building and Institution Building are closely connected. The biggest determinant of the “Bang for Buck” of your Merit is the country and community you are born in. Meritocracy rewards the marginal action… the last decision. How much value did you create based on what you did, and how much would there have been if you hadn’t done it? That is completely blind to the “Institution Value”. Alpha in the investment world is a way of leveling the playing field. “Time Weighted Rate of Return (TWRR)” allows comparison of individual performance. TWRR versus a Benchmark gives a sense of merit. But Alpha on Nothing is Nothing. At the end of the day, it is what we build together and over time that counts. It only makes sense to build something if you have real ownership that extends beyond your marginal actions. Far into the future. Compounding means what you do now matters far more to what happens long after you are gone, than what you can see now. Real ownership matters. Real institution-building matters. What you do, matters.