Money and Finance
From Brandes on Value:
Related link: Charles Brandes' Q4 2014 Commentary
- Charles Brandes On Risk
From Brandes on Value: Risk has now been popularly redefined as the impact of short-term volatility, not as what it really is, which is the permanent loss of capital. In my more than 40-year career, I have never seen risk as misunderstood yet as...
- Links
James Montier interview (LINK) One shouldn’t dwell too much on the semantics of a bubble. We at GMO define bubbles as a two standard deviation move away from the long term trend. And we are not quite there yet. We’d need another 10 to 15%. But let’s...
- Howard Marks: Investing Entails A Lot That Isn't Within One's Control...
From The Most Important Thing:The choice between offense and defense investing should be based on how much the investor believes is within his or her control. In my view, investing entails a lot that isn't. Professional tennis players can be...
- The Bernanke Put: Creating Tetrodoxin Investors - By Cliff W. Draughn
In the realm of academic sciences there sits at the top of the food chain the world of physics. The world according to Galileo, Pascal, and Newton can be quantified and the laws governing cause and effect put forth in intricate formulas and mathematical...
- The Entrepreneurial Investor
A logical investor must take irrational market behavior into account when choosing stocks to buy, sell, and hold. Fear and euphoria cannot dominate the actions of someone who really knows the companies and industries in which he or she invests, but other...
Money and Finance
Charles Brandes quote
From Brandes on Value:
With each ebb and flow, Mr. Market entices investors with the “quick and the new,” leading them to believe that this time is very different, and that we’ve never seen the likes of this before. His pattern of tricks changes slightly each time, but usually only enough to mine the one constant: investor behavior. Why doesn’t investor behavior change? We like to think it would, especially when you look at all the lessons of past markets. Short-term thinking, however, is human nature—it’s in our DNA. It’s how we are wired. We tend to process decisions relatively quickly based on what we see in front of us at the moment, or on what we believe others may be seeing. Such irrational behavior is ages old and is based on primal instincts like fear—we are afraid of either getting hurt or missing out. Many years later, this behavioralism was recognized as a key feature of value investing.....................
Related link: Charles Brandes' Q4 2014 Commentary
- Charles Brandes On Risk
From Brandes on Value: Risk has now been popularly redefined as the impact of short-term volatility, not as what it really is, which is the permanent loss of capital. In my more than 40-year career, I have never seen risk as misunderstood yet as...
- Links
James Montier interview (LINK) One shouldn’t dwell too much on the semantics of a bubble. We at GMO define bubbles as a two standard deviation move away from the long term trend. And we are not quite there yet. We’d need another 10 to 15%. But let’s...
- Howard Marks: Investing Entails A Lot That Isn't Within One's Control...
From The Most Important Thing:The choice between offense and defense investing should be based on how much the investor believes is within his or her control. In my view, investing entails a lot that isn't. Professional tennis players can be...
- The Bernanke Put: Creating Tetrodoxin Investors - By Cliff W. Draughn
In the realm of academic sciences there sits at the top of the food chain the world of physics. The world according to Galileo, Pascal, and Newton can be quantified and the laws governing cause and effect put forth in intricate formulas and mathematical...
- The Entrepreneurial Investor
A logical investor must take irrational market behavior into account when choosing stocks to buy, sell, and hold. Fear and euphoria cannot dominate the actions of someone who really knows the companies and industries in which he or she invests, but other...