The art of investment has one characteristic that is not generally appreciated. A creditable, if unspectacular, result can be achieved by the lay investor with a minimum of effort and capability; but to improve this easily attainable standard requires much application and more than a trace of wisdom. – Ben Graham, The Intelligent Investor
Everything should be made as simple as possible, but not simpler. – Albert Einstein
It’s not supposed to be easy. Anyone who finds it easy is stupid. – Charlie Munger
- pyrrhic: won at too great a cost to have been worthwhile for the victor. Losing 45% while the market drops 50% qualifies as market outperformance, but what a pyrrhic victory this would be for most of us.
- eloquently: fluent or persuasive in speaking or writing: an eloquent speech: They have – or manage to acquire – that necessary “trace of wisdom” that Ben Graham so eloquently calls for.
- perspiration: the process of sweating: In some pursuits, getting to the front of the pack means more schooling, more time in the gym or the library, better nutrition, more perspiration, greater stamina or better equipment.
- What is the range of likely future outcomes?
- Which outcome do I think will occur?
- What’s the probability I’m right?
- What does the consensus think?
- How does my expectation differ from the consensus?
- How does the current price for the asset comport with the consensus view of the future, and with mine?
- Is the consensus psychology that’s incorporated in the price too bullish or bearish?
- What will happen to the asset’s price if the consensus turns out to be right, and what if I’m right?
tote up: add together, add up: I think most of them fail to tote up their records, or they overlook their bad years or attribute losses to bad luck.
- Unconventionality: not based on or conforming to what is generally done or believed: his unconventional approach to life
You can’t do the same things others do and expect to outperform…. Unconventionality shouldn’t be a goal in itself, but rather a way of thinking.
|–||Conventional Behavior||Unconventional Behavior|
|Favorable Outcomes||Average good results||Above-average results|
|Unfavorable outcomes||Average bad results||Below-average results|
- eminent: famous and respected within a particular sphere: The attractiveness of buying something for less than it’s worth makes eminent sense.