In financial markets, predictions are ever-present and unavoidable. Yet investors worthy of the name don’t allow forecasts, including those of experts, to determine – or even influence – their decisions. The evidence has long been compelling but is almost universally ignored: authorities generally don’t (because they can’t) provide reliable guides to the future. Indeed, the … [Read more...] about Experts can’t predict yet investors must plan: What, then, to do?
Archives for November 2020
Does high IQ make a better investor?
In a recent two-part series, I showed that successful investment isn’t a matter of raw brainpower; instead, it’s primarily the result of refined character – and particularly of Stoic disposition. This article elaborates two related points. First, high-IQ investors don’t outperform those of average intellect. Indeed, many people – regardless of their smarts – repeatedly make … [Read more...] about Does high IQ make a better investor?
Investing lessons from Benjamin Graham
Benjamin Grossbaum entered this life in 1894 as a Briton; Benjamin Graham left it in 1977 as an American. He inherited Judaism but chose Stoicism. In his autobiography (Benjamin Graham: The Memoirs of the Dean of Wall Street, McGraw-Hill, 1996), he recalled that he “embraced stoicism as a gospel sent to him from heaven.” The main components of his “internal equipment” included … [Read more...] about Investing lessons from Benjamin Graham