1) Next week, I’ll be in London hosting The Most Interesting Dinner in The World.
Here’s a special moment from my last visit.🧵
Here’s a special moment from my last visit.🧵
2) One of the dinner rules is that if a participant does not share a chart with me on time, I search for something funny or embarrassing in its place and insert that in the handout.
3) In this instance, I pulled out an old email exchange with the guest from 2016 in which he shared personal observations about his investing journey.
MUST READ
MUST READ
4) “How do you feel about all this now?” I asked.
The guest took a deep breath: “I have come to learn to invest how I am and not worry about what others are doing. External perception does not matter to me anymore and I feel more relaxed because of it.”
The guest took a deep breath: “I have come to learn to invest how I am and not worry about what others are doing. External perception does not matter to me anymore and I feel more relaxed because of it.”
5) One of the attendees told a story of himself as a young altar boy.
After a round of laughter, he vividly remembered an encounter when a woman came up to the priest and asked him, “How do you live with being right?”
After a round of laughter, he vividly remembered an encounter when a woman came up to the priest and asked him, “How do you live with being right?”
6) The woman kept badgering the priest with that question.
He recalls it in his investing today as his biggest losses have come after a solid period of “being right.”
The opposite question, “How do you live with being wrong?” he considers when he is challenged by a position.
He recalls it in his investing today as his biggest losses have come after a solid period of “being right.”
The opposite question, “How do you live with being wrong?” he considers when he is challenged by a position.
7) Another guest recalled Jeremy Grantham’s March 2009 note titled, “Investing when terrified.”
That is how he always feels.
That is how he always feels.
8) Investing is both risky and psychologically painful, so it is absolutely important to have a battle plan for investment and stick to it.
“Process, process, process.”
It is the only way to overcome paralysis during tough times.
“Process, process, process.”
It is the only way to overcome paralysis during tough times.
9) “We are in the business of making mistakes,” another person said.
The winning ratio for most successful traders is only 50 to 60 percent.
That is emotionally difficult to live with.
The winning ratio for most successful traders is only 50 to 60 percent.
That is emotionally difficult to live with.
10) We need to realize, as Soros said, that imperfect understanding is the human condition and there is no shame in being wrong, only in failing to correct our mistakes.
“The biggest risk we need to manage is our self.”
“The biggest risk we need to manage is our self.”
11) “I know I will always struggle,” said a participant.
“The markets can never be mastered. I will never fully understand it.”
“The markets can never be mastered. I will never fully understand it.”
12) But rather than despairing at the thought, he approaches investing with increased humility and devotion.
“Survival is everything. This is what I love.”
“Survival is everything. This is what I love.”
13) One of the participants who was grateful to be able to transition from the sell-side to the buy-side talked about his interview.
The principals at the fund said two words: “Be honest.”
The principals at the fund said two words: “Be honest.”
14) He always keeps that in mind as he researches opportunities and makes recommendations.
This instils more self-awareness, which is the hallmark of a great trader.
This instils more self-awareness, which is the hallmark of a great trader.
15) “I recommend reading two books by Ryan Holiday: Ego is the Enemy and The Obstacle is the Way,” said the final guest.
“Although, the lesson is itself in the title. That has been a profound discovery for me.”
“Although, the lesson is itself in the title. That has been a profound discovery for me.”
16) You can read the full exchange here. stray-reflections.com
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