The Jacobi Method

Capital and RiskThe Jacobi Method is a multi-disciplinary approach based on behavioral economics, psychology, finance, engineering and sociology. Our focus within these disciplines was inspired by the studies of the great mathematician Carl Gustav Jacobi, as followed in the writings of Berkshire Hathaway’s Charlie Munger.

The Jacobi Method is rooted in the following Seven Timeless and Universal Certainties of Finance:

  1. Your investments should be actively and tactically managed, based on quantification.
  2. Behavioral bias and emotions frequently lead investors astray.
  3. Understanding valuation helps determine your range of possible outcomes.
  4. “The four most expensive words in the English language are, ‘This time it’s different.’” – John Templeton
  5. The patient investor is confident.
  6. Investment costs impact investment returns.
  7. “Invert. Always invert.” – Carl Gustav Jacobi