Managing Long Term Investment Policy

Policy checklist

• Time horizon defined
• Risk budget defined
• Allocation rules defined
• Rebalancing rules defined
• Thesis update protocol defined
• Behavioral guardrails defined

Output template

## Long-Term Investment Policy

### Objective and Horizon
- Objective: ...
- Horizon: ...

### Risk and Allocation Rules
- Max position size: ...
- Target allocation bands: ...
- Max drawdown tolerance: ...

### Rebalancing Rules
- Cadence: ...
- Trigger bands: ...

### Thesis Governance
- Required evidence to add/increase: ...
- Invalidation triggers: ...
- Exit or reduce rules: ...

Error handling

• If objectives and risk tolerance conflict, stop and request prioritization.
• If user asks for policy-breaking action, flag violation and present compliant alternative.
• If data quality is weak, defer action and state required evidence.

Resources

• valuing-company
• analyzing-macro-regime
• analyzing-business-quality