Farnam Street October 2018 Letter: The Arrogance Of Investing, Mr Market Revisited, Today’s Dangerous Valuations And Twenty seconds! – ValueWalk Premium
Farnam Street October 2018 Letter

Farnam Street October 2018 Letter: The Arrogance Of Investing, Mr Market Revisited, Today’s Dangerous Valuations And Twenty seconds!

Farnam Street letter to investors for the month of October 2018.
The Arrogance of Investing
Buying a stock is an act of sheer arrogance. It’s easy to forget, but there’s always someone on the other side of every trade. When you buy, you are saying, “What a dummy! I can’t believe they parted with their ownership of this company for such a low price. I must be smarter / more-informed / more-disciplined than they are. What luck!”

Every time you sell, there’s the same arrogance: “I can’t believe they took that company off my hands for such a high price! I must be smarter / more-informed / more-disciplined than they are. What luck!” The time frames matter: you can be right in the short-term and wrong in the long-term, or vice versa. But in nearly every instance, someone is right and someone is wrong when making a trade. How sure are you that you aren’t the dumb money on the wrong side of the trade? Warren Buffett is fond of the poker aphorism: “If you’ve been in the game thirty minutes and you don’t know who the patsy is, you’re the patsy.”

Q2 hedge fund letters, conference, scoops etc

Mr. Market Revisited

SORRY!

This content is exclusively for paying members.

If you are subscribed and having an account error please clear cache and cookies if that does not work email [email protected] or click Chat.


X
Saved Articles
X
TextTExtLInkTextTExtLInk

0