Was re-reading @williamgreen72 's Richer, WIser, Happier.
William writes "When I think about everything I've learned from Joel Greenblatt, I am struck above all by four simple investment lessons."
A brief thread on these four:
William writes "When I think about everything I've learned from Joel Greenblatt, I am struck above all by four simple investment lessons."
A brief thread on these four:
First, you don't need an optimal strategy. You need a sensible strategy that's good enough to achieve your financial goals.
As the Prussian military strategist Gen. Carl Von Clausewitz said, "The greatest enemy of a good plan is the dream of a perfect plan."
As the Prussian military strategist Gen. Carl Von Clausewitz said, "The greatest enemy of a good plan is the dream of a perfect plan."
Second, your straegy should be so simple and logical that you understand it, believe in it to your core, and can stick with it even in the difficult times when it no longer seems to work.
The strategy must also suit your tolerance for pain, volatility and loss.
The strategy must also suit your tolerance for pain, volatility and loss.
Third, you need to ask yourself whether you truly have the skills and temperament to beat the market.
One needs to be patient, even-tempered, self-assured, competitive, rational and disciplined.
One needs to be patient, even-tempered, self-assured, competitive, rational and disciplined.
Fourth, it's important to remember that you can be a rich and a successful investor without attempting to beat the market.
William Green in the chapter on Greenblatt concludes "Personally, I am perennially torn between the mathematical logic of indexing and the dream of beating the market. But I know this much: whichever path we choose, it pays to keep it simple."
Was a great weekend reading.
/End
Was a great weekend reading.
/End
Loading suggestions...