Research · Note 01
Why we only focus on top compounding assets
The history of wealth creation is a story of concentration in a few world-changing assets.
Charlie Munger used to mock the idea that a hundred stocks is more professional than four or five. He said it was easier to find five you understand. Warren Buffett wrote that he and Charlie decided it was too hard to make hundreds of smart choices in a lifetime. So they waited for a fat pitch and swung hard. Stanley Druckenmiller made the same point: When you see the idea, size it.
We keep four names on this screen because each does a job we can say in a sentence. Gold is everyone’s real asset. Bitcoin is the digital gold. QQQ owns the great companies that are building the future of AI, and lets winners run. Hype is a special infrastructure that will house all finance. The list can grow if we find other interesting names, but those should be very special and valuable assets to human beings.
Cash is a claim on a government that will pay you back. Over any long stretch that claim buys less. Gold is the old answer: a metal nobody can issue. Bitcoin is the new one: 21 million coins and nobody can print. Held since 2015, cash lost buying power. Gold multiplied. Bitcoin multiplied a lot more.
- Bitcoin
- Gold
- Cash
When a country borrows too much, it prints. Indexed to 1800, the dollar has lost about 99.5% of its value versus the gold it could buy. After 1971, the dollar, the pound, and the yen all leaked against the metal. Central banks have been adding gold for a decade, more than 1,000 tonnes a year from 2022 to 2024, and WGC surveys suggest they are likely to keep adding. Gold ›
Bitcoin takes the same scarce idea with its supply growth already below gold’s. By the end of 2025, ETFs and public companies held only 12% of all coins, and most pensions still hold none. A 1% slice of a $200 trillion book is about $2 trillion of demand, larger than bitcoin’s $1.6 trillion size today. It is also a useful diversifier: it has lower correlation with the S&P 500 than most equity sleeves. Bitcoin ›
Equities have created more wealth than any other major liquid asset class. QQQ holds the great companies building the future of AI. Size-weight lets winners take a larger share of the fund, instead of cutting them back to look diverse. Water the flowers, cut the weeds. A low-cost index is the best vehicle to invest, as QQQ has beaten 99% of its peers over 20 years through December 2024. QQQ ›
- QQQ
- S&P 500
Agents need a financial system that never closes. Hyperliquid runs 24 hours, 365 days, with the best liquidity and price discovery when banks and exchanges are shut. Jeff Yan built that venue with 11 people and close to $100 million of profit per employee. 99% of trading fees keep buying Hype in the open market. The AQAv2 deal with Circle and Coinbase sent about 90% of USDC reserve yield into additional buybacks. Hype ›
These four compounding assets are engineered to fortify investor portfolios against macro shifts, geopolitical disruptions, and the test of generations. Driven by this, our mission is to empower investors with the ultimate strategies to reliably compound their capital over time.
Charts are illustrative, from public prices. See the four notes for sources. Not investment advice. Not a promise that any name remains in the book.