The best investors in the world follow a multi-strategy approach
This is rarely discussed on Twitter for some reason
This is rarely discussed on Twitter for some reason
For example, Warren Buffett outlined the four strategies he followed during his days at the Buffett Partnership
- Controls
- Generals - Private Owner
- Generals - Relatively Undervalued
- Workout
- Controls
- Generals - Private Owner
- Generals - Relatively Undervalued
- Workout
Having a multi-strategy approach helps to diversify returns
That's because some areas like arbitrage would do best in a declining or flat market, and compensate for losses elsewhere
And owning stocks would do better than arbitrage in a rising market
That's because some areas like arbitrage would do best in a declining or flat market, and compensate for losses elsewhere
And owning stocks would do better than arbitrage in a rising market
Ben Graham followed a multi-strategy approach to investing at Graham-Newton between 1926 - 1956
They focuses on:
- Arbitrages
- Liquidations
- Related Hedges
- Net Current Asset Value Bargains
- They also did large scale "control acquisitions"
They focuses on:
- Arbitrages
- Liquidations
- Related Hedges
- Net Current Asset Value Bargains
- They also did large scale "control acquisitions"
While this thread deals with those who are professional investors, I believe individual investors can benefit in thinking in those terms as well
You can enjoy Buffett's Partnership Letters here:
dividendgrowthinvestor.com
You can enjoy Buffett's Partnership Letters here:
dividendgrowthinvestor.com
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