Ships crossing open water are built with internal walls that divide the hull into separate compartments.

These structures are called bulkheads.

They exist for a simple reason. If the hull is breached, water can be contained within a single section rather than flooding the entire vessel.

Experienced shipbuilders understand that damage is not impossible. It is inevitable.

The sea does not always cooperate. Storms arrive that were not anticipated.

Small breaches can be managed. Large breaches cannot.

The objective is not to prevent every breach.

It is to ensure that no single breach sinks the ship.

Portfolio construction works much the same way.

A well-constructed portfolio contains many bulkheads.

Markets do not always cooperate. Storms arrive that were not anticipated.

Breaches will occur. Markets will surprise. Positions will sometimes move in ways that were not expected.

The goal is not perfection.
The goal is completing one's voyage.

Only fatal mistakes are forbidden.

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