Invert, Always Invert
PsyFi Search Wednesday 12 December 2012 Invert, Always Invert I Wouldn’t Start From Here “All I want to know is where I’m going to die, so I’ll never go there” – Charlie Munger Carl Gustav Jacob Jacobi was a nineteenth century mathematician famous for his work on elliptic functions, amongst other accomplishments. Oddly he ends […]
Salience is Golden
PsyFi Search Tuesday 6 March 2012 Salience is Golden New Frames As so often in the past Warren Buffett has stirred up a swarm of annoyed investors, this time by explaining why he thinks gold as an asset class isn’t so much overvalued as irrelevant. He’s done this in a way typical of the man, […]
Warren Buffett Bias
PsyFi Search Wednesday 13 October 2010 Warren Buffett Bias Danger, Buffett Speaks It’s a racing certainty that more people have lost money following the wisdom of the Sage of Omaha than following tips from any number of other so-called gurus. Of course, it’s perfectly correct that virtually every pearl of wisdom dripping from the lips […]
Why Markets Crash
PsyFi Search Saturday 8 May 2010 Why Markets Crash An Unsteady AimOddly there’s little agreement amongst the experts about why markets crash. Although given that experts in fields without objective measures of success are generally less accurate than a drunk in a ship’s urinal during a storm that’s not really surprising. Still, if the best […]
The Buffet Munger Paradox
PsyFi Search Tuesday 21 April 2009 The Buffet Munger Paradox Financial Focus or Latticeworks of Mental Models? Warren Buffett and Charlie Munger, Chair and Vice-Chair of Berkshire Hathaway, are the most successful investors of all time as measured by monetary value, insight and wit. Don’t underestimate the intrinsic value of those latter two components – […]
Is Intrinsic Value Real?
PsyFi Search Sunday 15 March 2009 Is Intrinsic Value Real? Intrinsic Value Means Different Things to Different PeopleThe doyen of all value investors is Ben Graham, whose investing style was based around the concept of “intrinsic value”. For Graham intrinsic value was fundamentally about buying companies trading below NTAV (see Shoot the Company – Valuing […]
Investing Like Berkshire Hathaway
PsyFi Search Tuesday 5 May 2009 Investing Like Berkshire Hathaway Running the Quality Check So how do we explain The Buffet Munger Paradox? It’s perfectly clear that the gentlemen in question don’t have a problem, but how does Buffett’s demented focus tie in with Munger’s breathtaking scope? The answer’s simple, of course. Munger’s mental models […]