2024-11-24
1 小时 6 分钟You're listening to tip.
If an algorithm out there could outperform the market, would you be interested in learning more about what that algorithm consists of?
Now, I'm not talking about algorithmic trading or anything like that.
I'm talking about tried and true fundamental characteristics and strategies that people like Buffett and many other investing legends such as John Maynard Keynes, Charlie Munger, Lou Simpson, and Bill Ruane have utilized to outperform the market by a very wide margin over long periods of time.
Well, today I will be sharing a number of traits that are necessary to be considered a focus investor, which is the prototype of Warren Buffett.
We'll be looking at these issues from the book the Warren Buffett Portfolio by Robert Hagstrom.
We'll go over some very interesting research that the book's author, Robert Hagstrom, covered to better help investors understand the details of concentration and diversification, especially in relation to returns.
You probably won't be surprised to learn that concentrated portfolios will give you the highest probability of outperforming the market.
But on the flip side, there is a potential downward risk of concentrated portfolios that you should definitely be aware of, and we're going to cover that in quite a bit of detail.
Another attribute of focus investing is the emphasis on psychology.
I'll cover a few of Warren Buffett's biggest influences on his own psychology and what he learned from them.
I'll go over four psychological shortcomings that we pretty much all exhibit to some degree and that can wreak havoc on our investing returns and on our ability to sleep well at night.
We'll also cover why folks investors spend a lot of time thinking about their own psychological misjudgments and some strategies to use investor psychology to our own advantage.
We'll also cover the role of patients in successful investing.
Mainly, there's two distinct areas.
One is ignoring market forecasts and two, in waiting for fat pitches.
Now, I think patience is vital in these two areas because without patience, you're going to be looking to market forecasts to help fuel your need for action.
But if you have patience, you can wait around for long durations until a fat pitch presents itself.
But this is just scratching the surface of what I'll be covering today.
I'll also be discussing things like what makes a focus investor and why it's an important concept why focus investors reject much of the premises of financial academia, the common characteristics of outperforming focus investors throughout history, and a whole lot more.