CC Investments Masters Class, used with permission

By Investment Master Class

“If you know the stock doesn’t know you own it, you are ahead of the game.  You are ahead because you can change your mind and your actions without regard to what you did or thought yesterday; as you can start out with no preconceived notions.  Every day is a new day, providing a new set of continuously measurable options.  You can live up to all those old market saws, you can cut your losses and let your profits run, and it doesn’t even make your scar tissue itch because, being selfless, you are unscarred” Adam Smith, The Money Game

“In Wall Street the curtain goes up every day at ten o’clock on a new show”  Adam Smith, The Money Game

Mohnish Pabrai On Value Investing, Missed Opportunities and Autobiographies

Mohnish PabraiIn August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More

“Our portfolio is ‘made fresh daily’ and we will aggressively recycle capital from names that have fully played out to more opportunistic situations to reduce risk and sow the seeds for future productive harvests” Larry Robbins

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

“It has to meet the test every day: ‘If we didn't own it, would we buy it today?’ And if the answer is no, we say maybe we should get out.” James Dinan

"I look at each trade in my book every day and ask myself the question “Would I enter this trade today at this price?” If the answer is “no”, then the trade is gone. Most of the trades I do stop myself out of, I stop out because of time rather than because of loss. If I really love the trade and get strongly positioned, and then a month later, it still hasn’t moved, alarm bells start ringing in my head. I think to myself, that is a really great idea you have, but the market is just not playing ball” Michael Platt

“Don’t be too concerned about where you got into a position. The only relevant question is whether you are bullish or bearish on the position that day. Always think of your entry point as last night’s close” Paul Tudor Jones

“The proper perspective on an investment is not what you have made so far, but rather the risk and reward ratio at any given point. The price you paid for a stock is irrelevant” Leon Levy

"The price of which a stock was originally purchased or shorted should be irrelevant to any decision regarding the fate of that holding." Lee Ainslie

“The most important rule of trading is to play great defence, not great offense. Every day I assume every position I have is wrong. I know where my stop points are going to be . I do that so I can define my maximum possible drawdown. Hopefully, I spend the rest of the day enjoying positions that are going in my direction. If they are going against me, then I have a game plan for getting out” Paul Tudor Jones

“The “no holds” concept simply reflects the approach that every investment should represent a very compelling risk/reward opportunity from current prices, and if that’s not the case then capital should be redeployed into positions that are viewed as very compelling at current prices” Lee Ainslee

"I tried to view the portfolio fresh every day". Michael Steinhardt

"We do evaluate each position every day to consider whether the current position size is the most effective use of capital" Lee Ainslee

"Everyday is also fresh and you have to ask yourself if you came to the situation fresh today would you still be in the position and what would the right size be." Marc Cohodes

"Once a position goes on the sheet, it has to earn the right to stay on the sheet almost on a daily basis.” James Dinan

"Sometimes I suggest to my partners that we each go home, reflect as though we had nothing but cash, and come in just as we did on that Sunday before we started with a fresh portfolio and a new exposure position.  It's a great discipline to pretend you just got the money and have to build a brand new portfolio.... When you are working with an existing portfolio and reshaping it there are unrecognised, subconscious, emotional hang-ups that block you from impartial, cold-blooded investment actions like selling.  Your baggage is what you already own, and it gets in the way of excellence." Barton Biggs

Updated on

No posts to display