Investing & trading: April - June 2010 articles archive home
Stuff you probably already know.
The following pithy principles are offered by Richard Friesen in their raw form. “Some may make sense,” he says, “others may not.”

  • We are who we are and we start from where we start.
  • Every morning we agree to play as delighted beginners.
  • Tuesday, June 29, 2010 ... more
     
     
    Forgotten lessons of 2008.
    In his annual letter to Baupost Group investors, investing great Seth Klarman describes 20 lessons from the financial crisis which, he says, “were either never learned or else were immediately forgotten by most market participants.” Here are some of them:
    Wednesday, June 23, 2010 ... more
     
    There's no way to make a good deal with bad people.
    The most important question we ask management is what they believe is the best and highest use of the cash their company generates. We want to make sure the answer is top of mind and, of course, that we ultimately agree with it. - Christopher Grisanti.
    Tuesday, June 22, 2010 ... more
     
     
    The invevitable outcome of trading with a too-big ego.
    A too-big ego can cost you everything. Due to their oversized egos, Nick Leeson brought down the Barings Bank, Victor Niederhoffer ran his fund into the ground and John Merriweather ended up threatening the health of the entire system.
    Wednesday, June 9, 2010 ... more
     
     
    A quick recap of the investment advice given by Peter Lynch.
    In 1977, Peter Lynch was made head of the obscure Magellan Fund with $18m in assets. By the time he left in 1990, the fund had grown to more than $14bn in assets. Over the 13 year period the Fund averaged a 29.2% return. A record that remains unbeaten.
    Tuesday, June 8, 2010 ... more
     
    Montier on bubbles and quants
    Market efficiency. “The Efficient Market Hypothesis is the financial equivalent of Monty Python’s Dead Parrot. No matter how many times you point out that it is dead, believers insist it is just resting.”
    Thursday, June 3, 2010 ... more
     
     
    A few more rules and ideas ...
    Manage expectation. Don‘t expect spectacular moves around every corner. Most of the time the markets are a choppy range bound mess. Utilize a strategy that deals with this reality.
    Tuesday, June 1, 2010 ... more
     
    Advice from an old hand.
    George Slezak has published a 48 page ‘memo’ entitled “Principals and Psychology of Day Trading” to assist traders with what he calls the ‘blind side’ of trading.
    Tuesday, May 25, 2010 ... more
     
     
    Reasons to like small caps
    The beauty of penny stocks, of course, is that sometimes they ‘grow up' and become mid-cap stocks, multiplying in value hundreds of times over, making many people very wealthy. - Anon
    Tuesday, May 18, 2010 ... more
     
    Those who believe in the long-term.
    Avoid self-destructive investor behaviour. Emotions can wreak havoc on an investor’s ability to build long-term. Chasing the hot-performing investment category or making major tweaks to your long-term investment plan can sabotage your ability to build wealth.
    Tuesday, May 11, 2010 ... more
     
     
    The smart bets are on what could have been.
    The smart bets are always on what could have happened.
    One way to take out some of the emotional aspects of an investment is to sort out the “should,” “will” and “want” of it.
    Wednesday, May 5, 2010 ... more
     
    Of seductive details and dangerous beasts
    To admit ignorance is liberating in the extreme. It frees you from all the needless fretting over all the things you can’t control. Once you said you don’t know, you can think about how you deal with this ignorance.
    Thursday, April 29, 2010 ... more
     
     
    Herd instinct: The tendency to act without planned direction.
    "Fight the crowd. It is warm and fuzzy in the middle of crowds ... you do not need to be warm and fuzzy with investing." - Seth Klarman.
    Wednesday, April 28, 2010 ... more
     
    taking lessons from the bookies Thursday, April 22, 2010
    Bits of advice that could be useful. Tuesday, April 20, 2010
    Market inefficiencies: a constant source of opportunities. Wednesday, April 14, 2010
    Finding the right place to play the game is important too. Tuesday, April 13, 2010
    Extracts from Adam Smith’s 1960's classic, The Money Game. Thursday, April 8, 2010
    In case you think you're capable of a rational decision Thursday, April 1, 2010
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