Carreño Quality Investing · CQI

10 Rules

Elmer J. Carreño’s personal investing rulebook

  1. Aunt Rosie's Rule

    “What’s cheap is actually expensive.” No stocks under about $40–50 without very high confidence.

  2. The Munger Rule

    Quality businesses with real earnings and real revenue, not stories.

  3. Every Name Mapped

    Every holding must fit the 7-layer AI supply-chain map (Energy → AI Cloud → Optical → Memory → DC Solutions → Foundry/Packaging → Chips). The test: thesis or FOMO?

  4. Your Price, Not the Market's

    Preset trigger prices. Never chase.

  5. Stage Entries

    Small first piece, second piece kept dry. At a trigger, deploy 50% and hold 50% to average lower.

  6. Press Winners, Cut Stories

    Add to what works; exit story stocks.

  7. Don't Suck Your Thumb

    When the thesis is understood and your price arrives, execute. Evidence governs re-entries.

  8. Sizing

    New names start around 3–4% of the book until they earn more. Prefer 8–12 quality names over dust.

  9. No Borrowers

    A company must not need heavy borrowing to survive: real revenue, quality, and cash. (This rule removed CRWV, IREN and APLD from the book on Oct 12–13, 2026, days before they fell hard.)

  10. Rule 10, “The Rider”

    An exception to Rule 1’s price floor ONLY when value and potential clearly exceed the price. Rule 9 is never waived. Rider plays start small in a quarantined account and graduate only under the full rules.

Holdings · CQI grades

Owner’s rulebook assessment · share of holding names

52.6%

Clean

36.8%

Watch

10.5%

Flagged

  • NVDA

    Clean

    Chips

    Aligned with the CQI rules.

  • ANET

    Clean

    Optical

    Aligned with the CQI rules.

  • MRVL

    Clean

    Optical

    Aligned with the CQI rules.

  • MU

    Clean

    Memory

    Aligned with the CQI rules.

  • MOD

    Clean

    DC Solutions

    Aligned with the CQI rules.

  • COHR

    Clean

    Optical

    Aligned with the CQI rules.

  • GLW

    Flagged

    Optical

    Bought above its written trigger price (Rule 4); position kept small.

  • AMKR

    Clean

    Foundry/Packaging

    Aligned with the CQI rules.

  • VST

    Clean

    Energy

    Aligned with the CQI rules.

  • ORCL

    Clean

    AI Cloud

    Aligned with the CQI rules.

  • AAOI

    Clean

    Optical

    Aligned with the CQI rules.

  • TSLA

    Watch

    Off-map

    Deliberate diversifier outside the 7 layers (Rule 3).

  • CRWD

    Watch

    Off-map

    Cybersecurity diversifier outside the 7 layers (Rule 3).

  • FTNT

    Watch

    Off-map

    Cybersecurity diversifier outside the 7 layers (Rule 3).

  • BWXT

    Watch

    Off-map

    Defense/nuclear diversifier outside the 7 layers (Rule 3).

  • MCHP

    Watch

    Chips (adjacent)

    Semiconductor name held at starter size.

  • PLTR

    Watch

    Off-map

    AI software; valuation keeps it at starter size.

  • MP

    Watch

    Off-map

    Rare-earths materials name at starter size.

  • SPCX

    Flagged

    Off-map

    The owner's one deliberate exception: a single belief position held outside the rules by choice (Rules 2, 3 and 6). The flag is informational, not an error.

Sold — wash-sale windows

CRWV · IREN · APLD

Rule 9 exits

Window through

OKLO · ASTS

Story exits

Window through