What I Learnt from Larry Benedict

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.

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