Value-Trades follows a float-based compounding approach, comparable to an insurance or investment holding company. The system blends long-term equity ownership with an active reinvestment loop that continuously redeploys premium and dividend income.

• Core Equity: Concentrated holdings in high-quality, cash-generative businesses.
• Operating Float: Cash produced from covered-call premiums, dividends, and capital extractions, redeployed before final settlement.
• Reinvestment Engine: Ongoing allocation of float into low-risk, high-yield opportunities targeting roughly 1–2% monthly cash returns.

Realized losses are treated as capital recycling events that refresh liquidity for new deployments. The compounding cycle functions as:

1. Generate income from core holdings
2. Extract or roll capital to maintain liquidity
3. Reinvest float at monthly yields of 1–2%
4. Allow deferred positions to mature over multi-year horizons

• Conservative position sizing and liquidity buffers
• Preference for large-cap, high-liquidity equities
• Prioritize steady cash velocity over short-term speculation
• Treat taxation as a timing factor, not a reduction of economic return

To expand book value and cash-flow capacity each year through disciplined float management and option-based income generation. The aim is a scalable, durable system of compounding built for modern markets — a “Berkshire-style” business model adapted for personal capital management.