I did a simulation of how often a top money manager earning 20 percent per year with a 15 percent standard deviation would lose money over short time periods. A 20 percent return would be about double the market's long-term average return and a 15 percent standard deviation would be lower than historic market volatility. [...]

We go out of our way with our positions not to look at the original price we paid. All of our summary sheets have intrinsic value and closing price if you wanted to know the price paid you'd have to go look it up. Anchoring on your cost I know from experience can often cause [...]

One general principle I learned from [famed hedge fund manager] Michael Steinhardt years ago is that if he had a position, and there was any discrepancy at all factually or fundamentally from the original thesis, he'd close out the position. You could give him 20 good reasons to stay the course and he wouldn't do [...]

It isn't human nature to view the future in terms of a wide range of possibilities. We naturally think in terms of what is most likely to occur and implicitly assess the probability of that scenario occurring at 100 percent. That may sound reckless, but it's what most people do and isn't a bad way [...]

I had an inkling that 2009 would be a good year when Institut/onallnvestor magazine published an article in late 2008 titled “The Death of Value Investing.” In my experience, “Death of.. . “articles usually mark a turning point, irrespective of the subject. In this instance, I was struck not only by the article’s potential as [...]