Posts filed under “Philosophy”

Mea Culpas: ‘Fresh mistakes, every year’

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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 go through this annual review of blunders?

Rather than engage in the sort of selective retention that so many investors tend to do and pretend mistakes never happened, I prefer to “own” them. This allows me to learn from them, and with any luck avoid making the same errors again.

My motto: “Fresh mistakes, every year.”

It also provides a good opportunity for humility — a reminder of how little we actually know, and how much our expectations about the future are often at odds with what actually occurs. Ray Dalio, who runs the world’s largest hedge fund, observes this is how we “live up to our potential” as investors. The alternative is continually lying to oneself — about how smart we can be, how insightful our worldview is and what great investors we are. I am reminded of an old Yiddish expression: “Man plans, and God laughs.”

What mistakes did you make last year?

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Source:
My motto: ‘Fresh mistakes, every year’
Barry Ritholtz
Washington Post, February 9 2014
http://www.washingtonpost.com/business/my-motto-fresh-mistakes-every-year/2014/02/07/97911d22-8d3e-11e3-95dd-36ff657a4dae_story.html

Category: Apprenticed Investor, Philosophy

Fed is Too Focused on Wealth Effect, Equity Markets

  “When will these guys ever learn that maybe, just maybe, these Fed policies aimed at targeting asset prices at levels above their intrinsic values is probably not in the best interests of the nation?” -Dave Rosenberg, chief economist and strategist at Gluskin, Sheff   Not long ago, I was listening to former Federal Reserve…Read More

Category: Federal Reserve, Philosophy, Really, really bad calls, UnGuru

54% of Republicans Say We’ve Got Too Much Inequality

It’s a Myth that Conservatives Don’t Care About Inequality We’ve noted for years that it’s a myth that conservatives accept runaway inequality. Conservatives are very concerned about the stunning collapse of upward mobility. A poll from Gallup shows that a majority of Republicans think we’ve got too much inequality: Two out of three Americans are…Read More

Category: Philosophy, Politics, Wages & Income

Look Out Below, Follow Through Edition

click for updated futures     Yesterday, we discussed the likelihood of an equity correction versus the end of the bull market. Today, futures are deep in the red, looking like another 1 percent sell-off or worse awaits us. European stocks are down 1 percent or more, with the IBEX off more than 2 percent….Read More

Category: Markets, Philosophy

Assets versus Prices

Josh has an excellent post up, titled Don’t Hate the Asset, Hate the Price, that makes several important points. I want to reiterate and expand on them here. Some of these are lynchpins of an investing philosophy I have been espousing for many years. Its a broad discussion on price and value, and I think…Read More

Category: Investing, Philosophy, Really, really bad calls, Valuation

Neil deGrasse Tyson on Science, Religion and the Universe

Category: Philosophy, Science, Weekend

NoahOpinion’s Heroes of Blogging

Lovely sentiments from Noah Smith on a few of your favorite bloggers, including Josh Brown and yours truly: Barry Ritholtz: There is a huge amount of financial disinformation and misinformation and just plain bullshit out there in the world. Most financial news is random noise, and some is even worse than that. And there’s a…Read More

Category: Philosophy, Weblogs

Understanding Time: A Long Term Perspective

click for ginormous version
Perspective on Time
Source: Mayra Artes via Visual.ly

 

A different and perhaps more easily readable version of this is here . . .

 

Read More

Category: Digital Media, Philosophy

The Art of Intuition and the Science of Discovery

“The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.” ~ Albert Einstein What is intuition and how might it help or hinder an investor’s decision making process? A good philosopher begins with definitions, otherwise they…Read More

Category: Philosophy, Psychology, Trading

The Clever Fighter

Over at Forbes, Jessica Hagy (of Indexed fame) has been illustrating the Art of War, with excellent results. This observation from Ch4 tickled me: “What the ancients called a clever fighter is one who not only wins, but excels in winning with ease.”   Jessica Hagy via Forbes

Category: Digital Media, Philosophy