Category: Quotes

There are those who view their investments as art and those who view their investments as inventory.

The former often like their investments to be beautiful. They want to hang them on the wall and admire them.

At a 10,000 foot level many of these folks are avid followers of Buffett. They want to buy and hold and just admire the beauty (although of course the reality is that other than a handful of positions Buffett doesn’t actually hold in that manner, but I digress).

On the other hand, there are those, like me, who view their investments as inventory. I liken what I do to stocking a grocery store.

You have everything from filet mignon to packs of gum. I don’t care what it is as long as it will make me money.

Likewise, I don’t subscribe to the view that a smaller position doesn’t move the needle.

Many of these positions can be purchased within an hour or two (or less) of work. It’s like the gum or diet coke in a store. Stock it, sell it, wash, rinse and repeat. I’d do that all day long if possible.

-Provenance Unknown

“Outsized returns often come from betting against conventional wisdom, and conventional wisdom is usually right.

Given a 10 percent chance of a 100 times payoff, you should take that bet every time.

But you’re still going to be wrong nine times out of ten … We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs.

The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs.

This long-tailed distribution of returns is why it’s important to be bold. Big winners pay for so many experiments.”

-Jeff Bezos

Hat Tip : HA

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