Environment Flashcards
(4 cards)
Investors- shortcomings
As investors, we all have shortcomings; as I came to see it, the key is to accept who we are, understand our differences and limitations, and figure out ways to work around them.
Envy
Buffett and Munger joke that envy is the only one of the seven deadly sins that isn’t any fun. “Envy is crazy,” remarks Munger. “It’s 100 percent destructive. . . . If you get those things out of your life early, life works a lot better.”
Irrationality of the market
Ben Graham wrote brilliantly about the irrationality of Mr. Market. We need to recognize that this irrationality is also an inextricable part of our all-too-human wiring. A key aspect of my education as a value investor was to learn to detect these emotional vulnerabilities in myself so I could develop strategies—as we will see later—that prevent them from subverting me. This process of self-correction begins with self-knowledge.
New York
Skewed values & seductions
