SunTzu &The Art of War -- On Waging War
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On Waging War
(Wagin War)

Focus on the object of war and proper engagement.

Stay Focused On Strategic Objectives

"In war, then, let your great object be victory, not lengthy campaigns."

Portfolio Management and Risk Management Corollary:

Always keep attention and action focused on achieving strategic objectives as promptly as possible, (within what the market will allow), as opposed to becoming distracted by the nuances and intricacies of implementing complex strategies and tactics.


"When you engage in actual fighting, if victory is long in coming, the men's weapons will grow dull and their ardor will be dampened. If you lay siege to a town, you will exhaust your strength, and if the campaign is protracted, the resources of the state will not be equal to the strain. Never forget: When your weapons are dulled, your ardor dampened, your strength exhausted, and your treasure spent, other chieftains will spring up to take advantage of your extremity. Then no man, however wise, will be able to avert the consequences that must ensue."

"In all history, there is no instance of a country having benefited from prolonged warfare."

Portfolio Management and Risk Management Corollary:

When evaluating and implementing portfolio management and risk management strategies be sure to balance time factors and resources required with expected rewards and risks.

If the rewards of the strategy are not forthcoming within the expected timeframe, withdraw in order to regroup and refresh resources in preparation for future engagements.

Ensure Appropriate Financing

"The skillful general does not raise a second levy, neither are his supply wagons loaded more than twice."

Portfolio Management and Risk Management Corollary:

Assuming adherence to the principles in the Laying Plans section, ensure appropriate financing and resources prior to strategy implementation. Avoid exhausting finances and other resources beyond what was envisioned and risked in the original strategy.


"Once war is declared, he (the general) will not waste precious time in waiting for reinforcements, nor will he turn his army back for fresh supplies, but crosses the enemy's frontier without delay. The value of time--that is, being a little ahead of your opponent--has counted for more than either numerical superiority or the nicest calculations with regard to commissariat."

From Griffith's translation:

"An attack may lack ingenuity, but it must be delivered with supernatural speed."

Portfolio Management and Risk Management Corollary:

Timing, in almost every aspect of portfolio management and risk management, is critical, especially given that we will always be in the financial and numerical minority. Therefore, when a decision has been made, do not equivocate, implement it promptly.

Self-Sustaining Strategies

"Bring war material with you from home, but forage on the enemy. One cartload of the enemy's provisions is equivalent to twenty of one's own, ..."

Portfolio Management and Risk Management Corollaries:

Allow for adequate financing from own reserves to initiate portfolio management and risk management strategies.

Make use of every opportunity, within every strategy, to sell time value (a wasting asset) to secure option premium income from the opposition so as to finance the maintenance of the strategy.

Reward, Replenish, And Invest In Support Structure

"...when you capture spoils from the enemy, they must be used as rewards, so that all your men may have a keen desire to fight, each on his own account."

Portfolio Management and Risk Management Corollary:

After a successful campaign, be sure to allocate appropriate parts of the rewards to all resources employed in the portfolio management and risk management activity; replenish, and perhaps grow, liquidity account; increase longer term diversified investment portfolio; reward associates; replenish spiritual, emotional, mental, and physical reserves; and, invest in up-grading portfolio management and risk management support structure.

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