Money illusion
Failure to perceive that the dollar, or any other unit of money, expands or shrinks in value
investment psychology
The inherently short-term nature of the investment management industry
Market conditions are fixed only in part by balance sheets and income statements; much more by the hopes and fears of humanity; by greed, ambition, acts of God, invention, financial stress and strain, weather, discovery, fashion, and numberless other causes impossible to be listed without omission
Quantitative vs intuitive in investing
Human decisions affecting the future, whether personal or political or economic, cannot depend on strict mathematical expectation, since the basis for making such calculations does not exist.
Scatter shot estimates of fair value
A group with a high anchor were prepared to pay three times as much for the same wine as a group with a low anchor
Cut your losses is confused advice
Your baggage is what you already own, and it gets in the way of excellence.
Risk when markets are down
Here were financial people who could seriously consider that stocks are less safe because they have declined in price than they were after they had advanced in price
Superior investment performance – what it takes – part 2
As an individual investor I have to recognize that I am unlikely to think of something the brains of Wall Street haven’t thought of, or see things the brains of Wall Street have missed, or have insights they don’t possess.
Moderate risk tolerance
One way to be adept at avoiding failure is to avoid attempting anything you might fail at
Experience and becoming a really successful investor
You can continue to learn and improve your investing skills year after year.
It doesn’t matter what high profile investors are buying or selling
“If you’ve been in the [poker] game 30 minutes and you don’t know who the patsy is, you’re the patsy.”
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