We’ve all heard the old saying “a rising tide floats all boats” – but what does that mean for your portfolio?

Without the tide, even the best boats will stay stuck in the mud. A successful portfolio gets the macro right first before it delves into the micro.

In reality most all of your time should be focused on the macro. If you get the macro right, the micro will follow. Get yourself positioned in the right industries in the right countries during the right monetary conditions, and it matters much less which precise companies you hold.

If you put your focus on the micro, you risk getting run over by the macro. Stagnant industries, dying countries, contractionary monetary conditions. These are death to your portfolio, no matter how well managed your underlying businesses are.