Barton Biggs

Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:16 am

Reading is crucial.

Charlie Munger, a great investor and a very sagacious old guy, said it best:

‘I have said that in my whole life, I have known no wise person, over a broad subject matter who didn’t read all the time — none, zero.

Now I know all kinds of shrewd people who by staying within a narrow area do very well without reading.

But investment is a broad area. So if you think you’re going to be good at it and not read all the time you have a different idea than I do.’”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:25 am

“Understanding the effect of emotion on your actions has never been more important than it is now.

In the midst of this great financial and economic crisis that grips the world, Central Banks are printing money in one form or another.

This makes our investment world even more prone to bubbles and panics, than it has been in the past.

Either plague can kill you.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:28 am

“What’s the moral of this story?

Know thyself and know thy foibles.

Study the history of your emotions and your actions.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:32 am

“At the extreme moments of fear and greed, the power of the daily price momentum and the mood and passions of ‘the crowd’ are tremendously important psychological influences on you.

It takes a strong, self-confident, emotionally mature person to stand firm against disdain, mockery, and repudiation, when the market itself seems to be absolutely confirming that you are both mad and wrong.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:33 am

“Also, be obsessive in making sure your facts are right and that you haven’t missed or misunderstood something.

Beware of committing to mechanistic investing rules such as stop-loss limits or other formulas.

Work very hard to better understand how you as an investor react to both prosperity and adversity, and particularly to the market’s manic swings, both euphoric and traumatic.

Keep an investment diary and re-read it from time to time but particularly at moments when there is tremendous exuberance and also panic.

We are in a very emotional business, and any wisdom we can extract from our own experience is very valuable.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:35 am

“Nations, institutions, and individuals always have had and still have a powerful tendency, to prepare themselves to fight the last war.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:38 am

“I’ve come to believe a personal investment diary, is a step in the right direction, in coping with these pressures, in getting to know yourself and improving your investment behavior.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:44 am

“As I reflect on this crisis period so stuffed with opportunity but also so full of pain and terror, I am struck with how hard it is to be an investor and a fiduciary.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:45 am

“Fifty some years ago, Sir Alec Cairncross doodled it best:

A trend is a trend is a trend
But the question is, will it bend?
Will it alter its course
Through some unforeseen force
And come to a premature end?
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Barton Biggs

Postby winston » Fri Jul 20, 2012 10:54 am

“The history of the world is one of progress, and as a congenital optimist, I believe in equities.

Fundamentally, in the long run, you want to be an owner, not a lender.

However, you always have to bear in mind that this time truly may be different as Reinhart and Rogoff so eloquently preach.

Remember the 1930s, Japan in the late 1990s, and then, of course, as Rogoff said once with a sly smile, there is that period of human history known as ‘The Dark Ages and it lasted three hundred years.’”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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