03-07-2013, 09:29 AM
Which is investing is very, very hard. Finding the occasional mispriced situation where you’re right and the market is wrong very wrong, not a little wrong, very wrong is very difficult and ultimately quite rare. And therefore you should have an extremely high bar before taking your hard-earned money out of your bank account and putting it into something that could be very risky. A stock is risky.
So you don’t want to take that risk unless it’s a slam dunk, unless the odds aren’t 60-40 in your favor. The odds are 95-5 in your favor. And that’s the kind of discipline and patience you have to exercise and so the 20-punch-card analogy is a pretty good one. If you could only make 20 investments in your lifetime, you would think very long and hard and do extra research and have a really high bar before making an investment. So it’s a good principle to follow."
Forbes: Whitney, thank you very much.
Tilson: My pleasure.
95-5 in my favour?
If we follow this advice strictly, when can we find one?
Can we really compete with people like him?
i have my doubts?
To me as long as i can make some money, i am happy enough already.
imo.
So you don’t want to take that risk unless it’s a slam dunk, unless the odds aren’t 60-40 in your favor. The odds are 95-5 in your favor. And that’s the kind of discipline and patience you have to exercise and so the 20-punch-card analogy is a pretty good one. If you could only make 20 investments in your lifetime, you would think very long and hard and do extra research and have a really high bar before making an investment. So it’s a good principle to follow."
Forbes: Whitney, thank you very much.
Tilson: My pleasure.
95-5 in my favour?
If we follow this advice strictly, when can we find one?
Can we really compete with people like him?
i have my doubts?
To me as long as i can make some money, i am happy enough already.
imo.