Aloha Flywheel — Fund A's compounding loop
Fund A's seven-step compounding loop. OWN → RENT → COLLECT → REINVEST → SELL PUTS → ACCUMULATE → OWN MORE.
TL;DR: The Aloha Flywheel is Fund A's compounding loop expressed as seven verbs: OWN → RENT → COLLECT → REINVEST → SELL PUTS → ACCUMULATE → OWN MORE. Each step has a discipline (an Iron Rule, a DNSA signal, a T-Bill engine job); the loop is what produces the share-count ratchet that DRIP-ON makes inevitable.
Status as of 2026-05-27: public concept reference.
Relations
- DRIP-ON — the COLLECT → REINVEST step, mechanized.
- Iron Rules — every step is constrained by these.
- DNSA Engine — supplies the signals that gate each step.
- T-Bill Float Engine — funds the SELL PUTS step.
- Aces / Kings / Queens / Jacks — the universe.
- Aloha Flywheel — Flywheel diagram
The seven steps
1. OWN
Concentrated long position in a tier-1 / tier-2 free-cash-flow compounder. Cornerstones: BRK.B, AAPL, MSFT, GOOGL, META, AMZN, NVDA. Iron Rule #3 caps any one at 15%.
2. RENT
Sell covered calls against the position. DNSA signals that a call-selling window is open: IV rank > 70th percentile (52-week), RSI > 65 weekly, price at upper Bollinger Band monthly.
3. COLLECT
Premium banked in T-Bills. The T-Bill Float Engine earns risk-free yield on the float between rental and reinvestment.
4. REINVEST
DRIP-ON — premium routes back into the same underlying (or, if Iron Rule #3 would breach, the next-best Ace). 100%, no skim.
5. SELL PUTS
Cash-secured puts against names the fund wants more of, at strikes the fund wants to own more of them. Collateralized by the T-Bill reserve (Rule 2). Premium feeds back into the loop.
6. ACCUMULATE
On assignment, shares come in at the strike. Combined with the reinvested premium, this is where share-count growth is most visible. Combined with steps 1-5, share count only goes up.
7. OWN MORE
The new baseline. The flywheel restarts at OWN with a higher share count, more premium-bearing capacity, more put-collateral capacity. The Berkshire owner-equity story applied to options income.
Why "Aloha"
- "Aloha" — the goodbye-and-hello duality is the loop itself: every premium dollar collected today is a share dollar tomorrow.
- The flywheel is patient, cyclical, generational — the cultural value the name draws on.
A note on framing
This page describes a framework. It is not, and is not intended to be, a solicitation, an offer, or LP-facing material.
Sources
- Internal Hussh source note - aloha flywheel concept page synthesis and public wiki publication context.