Sunday, June 9, 2013

Process

Something simple about investing - and how successful investors are made.
This is actually from a small clip of a Richard Feynman lecture.

If an original guess/ hypothesis disagrees with the experiment to prove it, the original guess is wrong.

Quite elementary one would think - but fund managers, traders are subjective about how they treat experiments; they willfully disregard those experiments which they dont like.

The Superinvestors of Graham and Doddsville told me that value investing works, provided one has the intellect (not much required), the process (very important) and the temperament (most important).

And that was that. I'm on the yellow brick road now.

1 comment:

  1. I think the other part is spotting long term trends. BNSF was such an example, and resulted in a wide economic moat. Of course, as crude pipelines get built, margins will narrow but it will still have advantages for several more years to come.

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