Money and Finance
- Elon Musk Quote
From his Reddit AMA: One bit of advice: it is important to view knowledge as sort of a semantic tree -- make sure you understand the fundamental principles, i.e. the trunk and big branches, before you get into the leaves/details or there is nothing for...
- Ralph Waldo Emerson Quote
“As to methods there may be a million and then some, but principles are few. The man who grasps principles can successfully select his own methods. The man who tries methods, ignoring principles, is sure to have trouble.” -Ralph Waldo Emerson ...
- A Value Investor's Perspective On Tail Risk Protection: An Ode To The Joy Of Cash - By James Montier
In this white paper, James Montier, a member of GMO's Asset Allocation team, examines tail risk protection and how many of the principles of disciplined value investing can be helpful in first identifying tail risk and then choosing the best insurance...
- The Davis Dynasty Book Review
The Davis Dynasty is a different kind of investing book. Its part biography, part history of investing business, and part how to succeed as a long term investor. The Davis Dynasty tells the story of three generations of investors - Shelby Davis, Shelby...
- The Wine Cellar - Brett Arends On Bunting's Laws
The Wine Cellar series journals investing analysis that I find valuable over the long haul. This entry is more like a nice warm pint of ESB. One hidden gem I came across last year is Brett Arends' account of Bunting's laws - 12 stock investing...
Money and Finance
The Seven Immutable Laws of Investing - By James Montier
In my previous missive I concluded that investors should stay true to the principles that have always guided (and should always guide) sensible investment, but I left readers hanging as to what I believe those principles might actually be. So, now, for the moment of truth, I present a set of principles that together form what I call The Seven Immutable Laws of Investing.
They are as follows:
1. Always insist on a margin of safety
2. This time is never different
3. Be patient and wait for the fat pitch
4. Be contrarian
5. Risk is the permanent loss of capital, never a number
6. Be leery of leverage
7. Never invest in something you don’t understand
So let’s briefly examine each of them, and highlight any areas where investors’ current behavior violates one (or more) of the laws.
- Elon Musk Quote
From his Reddit AMA: One bit of advice: it is important to view knowledge as sort of a semantic tree -- make sure you understand the fundamental principles, i.e. the trunk and big branches, before you get into the leaves/details or there is nothing for...
- Ralph Waldo Emerson Quote
“As to methods there may be a million and then some, but principles are few. The man who grasps principles can successfully select his own methods. The man who tries methods, ignoring principles, is sure to have trouble.” -Ralph Waldo Emerson ...
- A Value Investor's Perspective On Tail Risk Protection: An Ode To The Joy Of Cash - By James Montier
In this white paper, James Montier, a member of GMO's Asset Allocation team, examines tail risk protection and how many of the principles of disciplined value investing can be helpful in first identifying tail risk and then choosing the best insurance...
- The Davis Dynasty Book Review
The Davis Dynasty is a different kind of investing book. Its part biography, part history of investing business, and part how to succeed as a long term investor. The Davis Dynasty tells the story of three generations of investors - Shelby Davis, Shelby...
- The Wine Cellar - Brett Arends On Bunting's Laws
The Wine Cellar series journals investing analysis that I find valuable over the long haul. This entry is more like a nice warm pint of ESB. One hidden gem I came across last year is Brett Arends' account of Bunting's laws - 12 stock investing...