I wanted to share with you a couple of observations i made through the years on investors.
Hope you will enjoy !
The cover my ass guy
- Throws at you huge and complicated boring theories about markets and the economy
- Is a super trend-follower but often denies it
- Is always overweight when markets go up and underweight when markets go down
- Will go 1% max underweight the benchmark – wow
- Performs like the benchmark
Conclusion: makes money in up years and… loses money in down years 🙂
- Thinks he’s super smart
- Will always be in the buzzy stories like oil when there is a OPEC meeting or Samsung’s Galaxy Notes’ fiasco
- Is always behind the curve and will never learn from past timing mistakes
- Goes short when it’s too late/low, and buys when it’s too late/high
Conclusion: makes money in the first hour, then panics and closes position at a loss.
- The one that knows precisely what will happen because it’s sooo obvious
- The one that figured everything out already before the others
- The one that – funny enough – panicked and sold everything the day after Brexit, Trump and Italy’s referendum…
Conclusion: when it’s obvious, it’s obviously wrong 🙂
The succesful entrepreneur
- The one that you love having conversations with
- Often very street-smart and down to earth
- Does not go into complicated useless explanations
- Bought Apple shares before the introduction of the first iPhone, bought Tesla shares in the beginning and bought European bluechips after Brexit, Trump and Italy’s referendum
Conclusion: makes good returns
There is no magic recipe however, buying undervalued quality assets is always a good deal and selling overvalued and/or overcrowded fantasy stuff makes a lot of sense too.
Which brings me to the conclusion that one should think twice before joining the current Trump equity rally which is based – for the time being – on pure fantasy !
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