You may be the greatest stock picker in the world, but if you follow the wrong investment process/ the wrong investment style/ wrong Principles of Operation your investing will not be successful.
Shielding themselves from the pain of losses by Broad Framing
Any prediction based on models can be overwhelmed by what happens in the real world
The betting errors made by the subjects included over-betting, under-betting, erratic-betting and betting based on previous flips
They looked at the allocation between stocks, bonds and cash. They found that over 95 percent of the funds’ returns came from their asset allocation.
Heuristic – This alternative to careful reasoning may cause us to answer the question of what is the fair value of a stock by asking the question, what is the ‘market value’?
Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.
With so many people waiting for others to make the first move, it’s amazing that anything gets bought.
It is only by working at what you can’t do that you turn into the expert you want to become.
A slowdown in business dynamism means that entrenched firms have less to fear from upstarts