A coward’s primer for investors per Paul Samuelson
Kahneman is telling us that an ordinary person might, without being thought silly or irrational or cowardly, reject the single bet but decide to take on the 100-bet game.
diversification
Match the market going up and, in a pullback, go down less
By timing we mean the endeavor to anticipate the action of the stock market – to buy or hold when the future course is deemed to be upward, to sell or refrain from buying when the course is downward. By pricing we mean the endeavor to buy stocks when they are quoted below their fair value and to sell them when they rise above such value.
How many stocks to own?
One of the reasons I can have a concentrated portfolio is because I understand what I own.
Asset allocation out of step with modern investment management
We are looking for opportunities and we don’t much care what category they’re in
What it means to not lose money
People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences
Concentration risk and the Magnificent Seven
The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return
Investment decision making in face of uncertainty
Robust decision-making embraces many plausible futures, then helps analysts and decision makers identify near-term actions that are robust across a very wide range of futures
How Warren Buffett was influenced by Philip Fisher
If the job has been correctly done when a common stock is purchased, the time to sell it is – almost never
KISS, diversification and balance
Mathematical models that show price correlation will give precise answers but aren’t useful
Conventional diversification makes no sense
The concerns which fail are those which have scattered their capital, which means that they have scattered their brains also. They have investments in this, or that, or the other, here, there and everywhere
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