| Rahul Gupta , Sundeep Nigam and 13 others posted in Asan Ideas for Wealth . Rahul Gupta March 16 at 5:13pm I am presently reading " The most important thing " by Howard Marks. I'll share few of the excerpt from the book. Chapter 1- Second level thinking * Valid approaches work some of the time but not all. * Circumstances rarely repeat exactly. * Psychology plays a major role in market. * Investing, like economics, is MORE ART than science. * Economics isn't an exact science. * it's almost hard to teach insights. * You have to react differently and behave differently. * You must be more right than others. * All investors can't beat the market since, collectively, they are the market. * So how is one to find bargains in efficient market? You must bring exceptional analytical ability , insights or foresight. But because it's exceptional, few people have it. *** The second level thinker takes a great many things into account*** they are listed here: 1- what is the range of likely future outcomes? 2- which outcome do I think will occur? 3- what's the probability I'm right? 4- what does the consensus think? 5- how does my expectation differ from the consensus? 6- how does the current price of the asset comport with the consensus view of the future, and with mine? 7- is the consensus Psychology that's Incorporated in the price too bullish or bearish? 8- what will happen to the assets price if the consensus turns out to be right, and what if I'm right? Please enjoy reading , I'll share more as I go by. Like Comment | | | | | | | | | | Rahul Gupta, Sundeep Nigam and 13 others posted in Asan Ideas for Wealth. | | |  | | | | | I am presently reading " The most important thing " by Howard Marks. I'll share few of the excerpt from the book.
Chapter 1- Second level thinking
* Valid approaches work some of the time but not all.
* Circumstances rarely repeat exactly.
* Psychology plays a major role in market.
* Investing, like economics, is MORE ART than science.
* Economics isn't an exact science.
* it's almost hard to teach insights.
* You have to react differently and behave differently.
* You must be more right than others.
* All investors can't beat the market since, collectively, they are the market.
* So how is one to find bargains in efficient market? You must bring exceptional analytical ability , insights or foresight. But because it's exceptional, few people have it.
*** The second level thinker takes a great many things into account*** they are listed here:
1- what is the range of likely future outcomes?
2- which outcome do I think will occur?
3- what's the probability I'm right?
4- what does the consensus think?
5- how does my expectation differ from the consensus?
6- how does the current price of the asset comport with the consensus view of the future, and with mine?
7- is the consensus Psychology that's Incorporated in the price too bullish or bearish?
8- what will happen to the assets price if the consensus turns out to be right, and what if I'm right?
Please enjoy reading , I'll share more as I go by. |
|
| |
| | |
| | | | | | | | | Reply to this email to comment on this post. | | |
| | | | | | This message was sent to kanchan16jan@gmail.com. If you don't want to receive these emails from Facebook in the future, please unsubscribe.
Facebook, Inc., Attention: Community Support, Menlo Park, CA 94025 |
| | | |
 |
0 comments:
Post a Comment