Chapter 2. Beliefs and Biases
Before we continue to the ultimate goal of constructing a profitable yet relatively safe portfolio, it is important that you understand some of my beliefs and biases that have developed over the past 40 years. These beliefs come from experimenting with investment methods, watching others, (many were star portfolio managers in their day), reading academic literature on finance theory, and observing the reasons for investment mistakes that could have been avoided with common sense. To me, it is surprising how a theory without practical application or proof can disseminate through the investment world so quickly and thoroughly, only to be destroyed by the marketplace behaving normally. Whether it’s stupidity, gullibility, ...
Get Beat the Market: Invest by Knowing What Stocks to Buy and What Stocks to Sell now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
