How Are You Different?
Alpha is generated by being a little different in a disciplined and thoughtful way.
5 min read
Alpha is generated by being a little different in a disciplined and thoughtful way.
Averaging down is a skill. Done well it can be your greatest asset. Done poorly it can mean disaster.
Nicolai Tangen is the CEO of Norges Bank Investment Management, Norway's $1.4 trillion sovereign wealth fund.
Dilution is the subtle erosion of ownership. This hidden, persistent addition of new supply of shares leaves shareholders with less and less of the company’s value. Dilution, like inflation, is a silent killer of returns.
Both stock picker and gambler need to develop a systematic approach to become consistent enough to take money from the casino, sportsbook or the stock market over the long-run.
Successful investing isn’t about being right all the time; it’s more about the ability to identify when you are wrong quicker.
Last year on History Channel’s “Pawn Stars”, a gentleman named David walked in with a guitar case. Rick Harrison, owner of the shop and star of the show, inquired, “What do we have here?” As David opened the case, he calmly stated, “It’s a 1963 American-made Fender Stratocaster.
Since the mid-1990’s, the number of listed US public companies has been declining. We always hear the same two reasons. First, the rise of venture capital and private equity has made it easier for companies to stay private. Second, the cost of being public is too prohibitive.
What if you knew the future and you could position yourself ahead of it?
Your initial due diligence might get you into a position, but it is your maintenance due diligence that will keep you invested and/or save you from big losses.
You can’t become a great investor overnight because the most important lessons can’t be taught. They must be experienced.