Types on Investors in the Market

There are several types on Investors in the market making investments in one or more categories of assets with the blogobjective of making a profit.  To name a few Individual investors, Angel investors, Sweat equity investor, Venture capitalist funds, Investment Trusts, Mutual funds, Hedge funds and Sovereign wealth funds.. here are some of the views how investment defined by them.

Warren buffet: A good business that can be purchased for less than the discounted value of its future earnings. Continue reading “Types on Investors in the Market”

Greed is Good ?

“The point is, ladies and gentleman, that greed, for lack of a better word, is good.” – Gordon GekkoSTOCK VOLATILITY

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” – Warren Buffet

Greed may have been good for Gordon Gekko (at least for a while), but in the investment world it rarely is as Warren Buffett is famous for saying.

Investors are unequivocally greedy today, and with some perspective it is hard to blame them. Continue reading “Greed is Good ?”

From The Bed of Procrustes

Theseus and Procrustes. Side A from an Attic r...

I still believe Fooled by Randomness is the best work by Nassim Nicolas Taleb and then he add n over it by Black Swan followed by The Bed of Procrustes. Here are some thing which I found Philosophical and Practical Aphorisms :-

  • The three most harmful addictions are heroin, carbohydrates and a monthly salary.
  • To bankrupt a fool give him information.
  • Education makes the wise slightly wiser, but it makes the fool vastly more dangerous

Most harmful addictions are heroin, carbohydrates and a monthly salary.

A spurious tail is the performance of a certain number of operators that is entirely caused by luck, what is called the AxeJUpmCQAAIYe9“lucky fool” in Taleb (2001). Because of winner-take-all-effects (from globalization),spurious performance increases with timeand explodes under fat tails in alarming proportions. An operator starting today, no matter his skill level, and ability to predict prices, will be outcompeted by the spurious tail. He published a paper shows the effect of powerlaw distributions on such spurious tail.

Taleb’s maverick thoughts became more famous from the The Bed of Procrustes – Here are some of them that I could recall :

The three most harmful addictions are heroin, Continue reading “Most harmful addictions are heroin, carbohydrates and a monthly salary.”