Q: Let’s play a word association game. I’ll say a word and you say whatever comes to mind.
Q: Technical analysis
Paul Tudor Jones: Made well over half the money that I’ve made in my lifetime.
Q: Fundamental Analysis
Paul Tudor Jones: Made the rest.
Q: Are you better at one or the other?
Paul Tudor Jones: Probably technical analysis.
Q: Market efficiency
Paul Tudor Jones: No such thing.
Q: Long Term Capital Management
Paul Tudor Jones: Icarus.
Q: Black Monday
Paul Tudor Jones: It was like watching a natural disaster from the sidelines. I was intimately involved in that day, but the macro implications of what was happening overwhelmed any personal considerations that I had.
Q: Warren Buffet
Paul Tudor Jones: His aversion to paying taxes made him a great investor.
Q: Kids
Paul Tudor Jones: The most fun you’ll ever have.
Q: Environment
Paul Tudor Jones: The second most fun you’ll ever have.
Q: The Internet
Paul Tudor Jones: A wonderful delivery mechanism that’s overhyped.
Q: Day Traders
Paul Tudor Jones: 95% losers.
Q: Wall Street
Paul Tudor Jones: The last great frontier. I went there with nothing. You can go there with nothing and do whatever you want to do.
from Paul Tudor Jones Interview
Trade Secret
Linkfest:February 05,2015
Some stuff I am reading today morning:
Nestle is getting paid to borrow money (WP)
7 small cap stocks that have caught the fancy of FIIs (ET)
Dolly Khanna escapes the carnage in Hawkins Cookers (RJ)
IDFC Securities Research: Persistent Systems (DeadPresident)
Sugar companies seek to restructure debt (Mint)
It’s your fault (Fool)
How to review your mutual fund portfolio (FreeFinCal)
Gauging the financial crisis endgame (Credit Writedowns)
The power of lower oil prices (Blackstone)
Trading and investing as entrepreneurship (TraderFeed)
Patience is an investing virtue
A “price conscious” buy is the critical lynchpin for our strategy, as it not only sets the basis for future return potential, but as importantly provides downside protection to avoid a return sapping capital loss. It is said that patience is a virtue, and indeed for our strategy, patience for an appropriate discount is essential for our purchase decisions. As we scour our broad and eclectic investment universe, we analyze many more companies than we will ever own. It is this continuing due diligence of management discussions, supplier, vendor and competitor interviews and financial statement analysis that helps us build our industry knowledge and form our unique view on what an enterprise and its assets are worth. We analyze many ‘good’ companies, but it is critical that we are patient and buy opportunistically when the discount to asset value provides an acceptable return and a mitigation of risk.-wrote fund manager Chip Rewey