Larry Benedict is the Founder and CEO of Banyan Equity Management
What I learnt from him:
Don’t put all your money or even most of your money in one idea-even though you think that idea can be a multi-bagger and can make you insanely rich…because you could very well be wrong
From his interview in the Book The Hedge Fund Wizards :
“Since I started in the business, I have seen a number of traders who ended up committing suicide or being homeless.
The one trait they all shared was that they had a gambler’s mentality.
When they were losing, they were always looking for that one trade that would make it all back.
I learned early on that you can’t do that.
This is a business where you have to work. I grind out the returns. “