Category: Miscellaneous
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You are not smarter than a hedge fund
I see a lot of people recommending “hidden gems” on value investing forums. They pour over financial reports of cigar butts and net-nets to try to uncover these gems that everyone else has somehow missed. I am here to tell you that it’s unlikely that hedge funds and other savvy investors missed anything. The odds…
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Behavioral and emotional temperament necessary for successful investing
We have talked a bit about the mechanics of investing and some of the rules to follow while investing. However, an often overlooked aspect of successful investing is the emotional and behavioral aspect. It is one thing to know that you should have a buy and hold attitude through thick or thin, but it is…
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The Pareto Principle can improve your life
In the last post, I mentioned the Pareto principle or the 80/20 rule. This rule states that for many systems or outcomes, 80% of the consequences or results come from 20% of the causes. I see this rule all the time in my scientific research. Complex systems with many variables often have 2 or 3…