Vision Capital Venture, Ltd.
This process can take place quickly in one lifetime, or, it can occur more slowly over several lifetimes. Each very different situation creates particular needs over managing the balance between constant protection of principal, with traditional management techniques, and, at the same time, constant awareness of how to exploit broad portfolio growth opportunities as they align with previously unknown elements, that is, whether or not they lie in familiar or traditional areas.
Example - While western equity markets have stagnated in the past decade, equity markets in other parts of the world have continued to thrive, based upon their emergence as financial, production/industrial or natural resource power centers. Shedding equities as a whole is a philosophy that might protect one portfolio, while, on the other hand, would limit one's opportunity to the advantages of rotation into other areas.
Example - As specific portfolio analysis would show, monitoring and evaluating one sector directly in comparison to one other specific sector would instantly show where the advantage exists, and, when that advantage between the two sectors shifts away from an advantage and toward
a disadvantage. By identifying the strengths and weaknesses of sectors or groups on a continuing basis, you could steer away from the 'flavor of the month' being promoted by the financial media, or, by that of the 'talking heads' on TV, both of whom might change with the wind, never owning up to their misplaced projections of the past.
Example - As the explosion continues to occur in squeezing more computing and processing power into ever smaller and smaller physical spaces, simply waiting on the maturity of newly identified technologies is the fast way to stagnation. There must be a balance between watching on the sidelines for signs of stability and growth, versus using the fundamental measures to evaluate new directions, and join them before they become household names and well-known events.