Jim Grant

[winston]

Human psychology plays a massive role in the world of investing.

“To suppose that the value of a common stock is determined purely by a corporation’s earnings, discounted by the relevant interest rates and adjusted for the marginal tax rate, is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin and believed Orson Wells, when he told them over the radio that the Martians had landed.”

- Jim Grant

[winston]

The 10 commandments for investing

by Jim Grant

1. The key to successful investing is having everyone agree with you — LATER.
2. You aren’t good with money.
3. Everything about investing is cyclical…
4. You can’t predict the future. Nor can the guy who claims he can.
5. Every good idea gets driven into the ground like a tomato stake.
6. Markets are not perfectly efficient.
7. Patience is the highest-yielding asset.
8. Never stand in line to buy anything.
9. Leverage is like chocolate cake: just a little bit, please.
10. “Don’t overestimate the courage you will have if things go against you.”

Source: Grant’s Interest Rate Observer

http://thecrux.com/jim-grant-the-10-com ... investors/

[winston]

‘Higher valuations are here to stay’

by Jim Grant

Source: Grant’s Interest Rate Observer

http://thecrux.com/investing-legend-hig ... e-to-stay/