I’ll give you some examples, followed by comments. Since this article is about learning, let’s start with this:
“What we learn from history is that people don’t learn from history.” When investors get either too fearful or too greedy, they sometimes hide behind the notion that “This time it’s different.” Usually they regret it.
On fear and greed
“Two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics will be unpredictable. … We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” This is the simple recipe for being a contrarian investor. Continue reading
The financial markets have come a long way in terms of technology, transparency, accuracy and speed. But there are few basics of the market that never changes, be it thoughts by the great Benjamin Graham, Warren Buffet, Charlie Munger or Peter Lynch.
Here are some thoughts by Jesse Livermore written in 1940 and they apply in today’s market scenario as well:-
- Nothing new ever occurs in the business of speculating or investing in securities and commodities
- Money cannot consistently be made trading every day or every week during the year
Was reading an interview Warren Buffett on Bloomberg :
WARREN BUFFETT: Well I came up with that a long, long time ago to describe the situation that – I was lucky. I was born in the United States. The odds were 30 or 40-to-1 against that. I had some lucky genes. I was born at the right time. If I’d been born thousands of years ago I’d be some animal’s lunch because I can’t run very fast or climb trees. So there’s so much chance in how we enter the world.
LIU: And you were always aware to make sure your children and their grandchildren, and your grandchildren would be grounded. Continue reading
It would be futile comparing Warren Buffet and George Soros wealth disparity. They’re both wealthy and successful. Two different styles; equally effective.
If you’re not familiar with Veryan Allen , he writes these insanely awesome rants about how the passive indexing cult is clueless and real alpha is out there for real managers to capture. I love reading his stuff, even when I disagree with some of it.
He’s just tweeted a link to a classic post on his aptly and spartanly titled “Hedge Fund” blog, in which we learn about how Warren Buffett is essentially the lead hedge fund manager in the universe even though he runs, for all intents and purposes, a no-fee actively managed closed-end fund.
I especially liked this part, where he explains why Warren Buffett has become wealthier than George Soros (not that it matters at that level), despite Soros’s better performance… Continue reading
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
- The best revenge for a Liar is to convince him that you believe what he said. Continue reading