Why Investing Is Like Betting at the Race Track and moreâ¦
June 9, 2015
Same for a poker hand. That would be historical precedent.”
. It ties in with the video on why investing is like betting at a race track. 2) Why foreign-listed companies are returning home on the back of China’s stock market surge (LINK)
The sad fact is that this “story” has repeated itself many times now, but investors seem to have forgotten previous lessons learnt. On any given day a good investor or a good poker player can lose money. This reminds me of what Jeremy Grantham said when asked what people would learn from the whole financial crisis.
The answer is, not at all. The following article highlights what can only be described “dubious and aggressive” when it comes to valuing start-ups.
He said, “In the short term a lot, in the medium term a little, in the long term, nothing at all. Many successful investors like Warren Buffett or David Einhorn are often seen at poker or bridge tournaments.
3) The Greatest Investment Book Ever Written (LINK)
4) Why Investing Is Like Betting at the Race Track – Nelson Obus of Wynnefield Capital Management
6) Solar Panel Maker Suffering HK Share Sell-Off ‘Failed to Repay Loans’ (LINK)
5) People ask me “Is poker luck?” and “Is investing luck?”
To follow up on this, I’ve had some suspicions on the recent spate of “Unicorns” (start-ups with billion dollar valuations). But sample sizes matter. One poker tournament isn’t very different from a coin-flipping contest and neither is six months of investment results.
- David Einhorn, Greenlight Capital
On that basis luck plays a role. The plot thickens, but I suspect that this is barely the tip of the iceberg. Any stock investment can turn out to be a loser no matter how large the edge appears. While investors may have been burn, the bull market has just begun, and this will be relegated to a footnote in history before long.
Are the conditions for a bubble being set?
This is a great piece on how investing is really similar to poker. But over time – over thousands of hands against a variety of players and over hundreds of investments in a variety of market environments – skill wins out.
And finally, here’s an update on the Hanergy saga. I feel that there’s a big difference between games of pure luck, and games where skill prevails
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