Investing

Why investors are impatient

(Excerpt from Useful Laws of the Land by Morgan Housel) Vierordt’s law: We underestimate long periods of time and overestimate short periods of time. Nineteenth-century physiologist Karl von Vierordt spent most...

February 23, 2020| Investing Read More

You have to be reactive and not proactive in the markets

(Extracted from The Business of Options by Martin O’Connell) When I left the corporate life to become an independent CBOE marketmaker in 1977, I considered myself to be a real adventurer. I wasn’t going to spend...

February 20, 2020| Investing Read More

Your Investing Return Is Highly Dependent On When You Were Born

(Extracted from When You Were Born > Everything Else by Michael Batnick) What is the most important factor behind one’s investing experience? Is it their ability to analyze a business, their temperament, or their...

February 14, 2020| Investing Read More

Why branding is a good moat

(Extracted from Double Your Profits: In Six Months Or Less by Bob Fifer) If the cost of entry is $100 million to build a new plant or invest in product and inventory, and if a competitor’s entry into the market...

November 22, 2019| Investing Read More

You can lose money even in the best performing fund

(Extracted from innovativewealth) Fidelity Investments conducted a study on their Magellan fund from 1977-1990, during Peter Lynch’s tenure. His average annual return during this period was 29%. This is a remarkable...

October 8, 2019| Investing, Path Dependence Read More

6 ways deep value stocks get unlocked

(Extracted from The Intelligent Investor by Benjamin Graham) If most secondary issues tend normally to be undervalued, what reason has the investor to believe that he can profit from such a situation? For if it...

October 1, 2019| Investing Read More

Don’t act smart in the markets

(Excerpt from The Intelligent Investor by Benjamin Graham) The art of investment has one characteristic that is not generally appreciated. A creditable, if unspectacular, result can be achieved by the lay investor with...

September 23, 2019| Fallibility, Investing, Overconfidence Bias, Randomness Read More

Finance doesn’t know how to put money to good uses

(Excerpt from Zero to One by Peter Thiel) While a definitely optimistic future would need engineers to design underwater cities and settlements in space, an indefinitely optimistic future calls for more bankers and...

September 21, 2019| Investing, World Read More

Being fallible in investing and not hanging onto a wrong idea

(Extracted from Fooled by Randomness by Nassim Taleb) One of the best traders I have ever encountered in my life, Nigel Babbage, has the remarkable attribute of being completely free of any path dependence in his...

September 20, 2019| Fallibility, Investing Read More

Losing $1 for most expirations and making $10 more than 9.1% of the time

(Extracted from Fooled by Randomness by Nassim Taleb) There is another type of satisfaction provided by the option seller. It is the steady return and the steady feeling of reward—what psychologists call flow. It...

September 20, 2019| Inversion, Investing, Nonlinearity Read More

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