Sharing one of the extract that I liked in Traders Guns and Money – From the Investment bankers prospective all clients are real arseholes but imagesinvestors are real arseholes. If the buy side say F*** you, before they hang up, investors also say F*** you when they pick up the phone. Here are some key principles for fund management:

1) Diversification: Harry Markowitz proved that putting all your eggs in one basket was risky. Warren buffet continues to defy this successfully. He argues you are better off putting your money into a few things you know and understand, and that are cheap. He doesn’t like the thought of buying all the stuff you know nothing about.  Continue reading

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