The 1% IRR of Writing

“I take hundreds of shots in a single workout. It’s about muscle memory and consistency.” — Stephen Curry

My sons recently discovered basketball. Wanting to teach them how to shoot, we started watching Stephen Curry’s MasterClass. While much of it was too technical for a 7- and 5-year-old, the videos offered a window into the habits of a true master.

It got me thinking about my own reps - my practice as an investor, and more broadly, as a thinker. What does muscle memory look like in this world?

Just like in basketball, there’s no single drill that builds mastery. Improvement comes from many habits: discussing ideas with the thoughtful people, turning over rocks (a term of art for evaluating lots of companies), reading widely and often. But one habit reinforces all others: writing.

Writing as Practice

Writing is a form of mental training. You can’t write clearly without thinking clearly. And the act of writing - especially in long form - forces that clarity. That alone makes it invaluable.

There are two key forms of writing:

• Writing for yourself

• Writing for others

Writing for myself often begins with a simple question – for example, “What’s my intention today?” The act of answering, even briefly, forces a response. That itself is powerful.

Writing for others is different. As a portfolio manager, I communicate with our LPs through periodic letters. These aren’t mere updates- they’re time capsules of our thinking, meant to convey not just what we’re doing, but why.

At first, these letters were painful to write. Prior to writing letters, I’d built countless PowerPoint decks and investment memos, but I hadn’t written for an audience I wanted to truly understand me. These letters changed that. They showed me the deeper power of writing.

The 1% IRR

Writing about investing - mental models, theses, risks - helps test and refine our thinking. The process often starts consciously, but the subconscious takes over. Patterns emerge. Insights clarify.

Even writing this Substack, I’m not trying to say something novel. I’m trying to say something important - to me. That’s the 1% IRR: each essay is a small but steady return, sharpening my understanding, deepening my muscle memory.

Why Writing Matters Even More Now

AI tools have made it easier than ever to write. But how we use them matters.

There are two approaches:

1. Let AI write the first draft

2. Write the first draft yourself, then use AI as an editor

The first is tempting - it’s the “easy button.” But if the goal of writing is to clarify your own thinking, outsourcing that first step defeats the purpose. The second approach - writing first, editing with AI - is where the value lies. AI becomes a mirror, showing you the holes in your logic. That feedback loop is invaluable.

Everyone needs an editor. We’ve been lucky to work with a great journalist. Today, AI can play that role too. In fact, AI edited this essay (and definitely improved it from the 4^th draft that I was on)!

Final Takeaway

Writing - even about familiar, well-trodden ideas – has been a critical way to take daily practice shots. It builds the muscle memory I need to think clearly and invest well. So, I keep writing. One percent better each time.