Investing Tag Archive

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

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

Ed Thorp on Kelly Criterion

(Excerpt from A Man for All Markets by Ed Thorp) Kelly’s criterion is not limited to two-value payoffs but applies generally to any gambling or investing situation in which the probabilities are known or can be...

September 19, 2019| Investing, Kelly Criterion, Nonlinearity Read More

4 ways to beat the market according to Ed Thorp

(Extracted from A Man for All Markets by Ed Thorp) Our portrait of real markets tells us what it takes to beat the market. Any of these can do it: 1. Get good information early. How do you know if your information...

September 19, 2019| Investing Read More

Size of wins matters, not frequency of wins

(Extracted from Fooled by Randomness by Nassim Taleb) The best description of my lifelong business in the market is “skewed bets,” that is, I try to benefit from rare events, events that do not tend to repeat...

September 19, 2019| Investing, Nonlinearity Read More

Definition of blowup

(Extracted from Fooled by Randomness by Nassim Taleb) The blowup, I will repeat, is different from merely incurring a monetary loss; it is losing money when one does not believe that such fact is possible at all. There...

September 19, 2019| Investing Read More

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