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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.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.