Posts filed under “Apprenticed Investor”

What Kind of Investor Are You?

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My Sunday Washington Post Business Section column is out. This morning, we look at the differences between Outcome or Process focused investors.

The print version had the full headline Investing’s smart minority: The process people while the online version Outcome or process — what investment focus succeeds over time?.

Here’s an excerpt from the column:

“Has this ever happened to you?

In the course of a conversation, you learn about an acquaintance or colleague who made an unusually successful investment. For whatever reason, they put capital at risk into XYZ and the returns were extraordinary — far more than what is typical for your investment returns.

In that situation, which of the following comes closest to your immediate thoughts?

(1) I wish my 401(k) was filled with XYZ !

(2) If only I had his access to his inside information.

(3) How much time and effort goes into his research?

(4) What does his win/loss ratio look like? Gains vs. losses over time?

(5) Sounds like he got really lucky.”

The conceit of the article is that your answer reveals the type of investor you are likely to be, and suggests why one is superior to the other.

The Post did a very nice job in the dead tree version of the paper — the layout from page 1 of the Business section to the jump on page 4 really works.

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Source:
Outcome or process — what investment focus succeeds over time?
Barry Ritholtz
Washington Post, February 23 2014  
http://wapo.st/OpKZq2

Category: Apprenticed Investor, Psychology

Nine Surprising Things Jesse Livermore Said

There are those who would convince you that it is somehow smart or in your best interest to be manically switching your investments around, back and forth, long and short, on a daily basis. To pay attention to this kind of overstimulation is the height of madness, even for professional traders. The most storied and…Read More

Category: Apprenticed Investor, Trading

My motto: ‘Fresh mistakes, every year’

My motto: ‘Fresh mistakes, every year’ Barry Ritholtz Washington Post February 9 2014     “More than anything else, what differentiates people who live up to their potential from those who don’t is a willingness to look at themselves and others objectively.” — Ray Dalio, Bridgewater   Once again, it is the time of year…Read More

Category: Apprenticed Investor

Your Ideology Is Killing Your Portfolio

“It’s going to blow up the deficit, won’t create any jobs and will cause all sorts of other problems.” A hedge-fund manager was lecturing me about the Jobs and Growth Tax Relief Reconciliation Act of 2003, better known as the Bush tax cuts. I had been suggesting that this fund close its short positions on…Read More

Category: Apprenticed Investor, Investing, Politics, Psychology, Really, really bad calls

Mea Culpas: ‘Fresh mistakes, every year’

>   Its my annual mea culpas column for the Washington Post Business Section column. Here’s an excerpt from the column: “Once again, it is the time of year when I look back at the various investing, trading and other mistakes I’ve made. (Last year’s version is here; prior years can be found here). Why…Read More

Category: Apprenticed Investor, Philosophy

Google’s Nest Labs Acquisition is a Smart Move

Defense! Google’s Nest Labs acquisition is a smart move Barry Ritholtz Washington Post, January 26 2014     With the Super Bowl just a week away, the age-old question of whether offense or defense wins big games is at hand. “The best defense is a good offense,” goes the saying, with the Denver Broncos called…Read More

Category: Apprenticed Investor, M&A

Crashes, Corrections & Sentiment

On Monday, we saw a sell-off of more than 1 percent across major U.S. markets. Europe and Asia followed suit the next day. Judging by my e-mails I received, this was it, the beginning of the end, and “you unrepentant bulls are finally going to get what you deserved.” Except not quite yet. Tuesday and…Read More

Category: Apprenticed Investor, Markets, Trading

Your Best Investment Idea for the Next Decade

Yesterday, Business Insider posted a huge piece, wherein they ask various folks for their best idea for a decade. With the low key headlne, Wall Street’s Brightest Minds Reveal Their Best Investment Ideas For The Next Decade, here is how I responded: Financial planning: “As it turns out, that is an easy question: Our own…Read More

Category: Apprenticed Investor, Asset Allocation, Finance, Media

Pushback: Lessons from Gold’s Rise & Fall

Last week, we published a 2,500-word opus on what lessons could be learned from the rise and fall of gold. There was lots of feedback on the general concept and many of the specifics. By and large, the response was positive, with most of the pushback coming from those who were long gold or other…Read More

Category: Apprenticed Investor, Gold & Precious Metals

Bitten by the Gold Bug? Some Lessons

>   I did something different with my Sunday Washington Post Business Section this week. Starting with the 2,500 word long form discussion I wrote for Bloomberg, I simplified this and edited it down to half that length. The print version had the headline Bitten by the gold bug? You’ll do well to heed the…Read More

Category: Apprenticed Investor, Gold & Precious Metals