Find Your Edge


Analysis, Circle of Competence, Contrarian, Independent thinking, Investment Process

In my previous post, I wrote that to achieve outperformance or above-average returns, your investment process has to be ‘unconventional’ compared to the majority. And that can only be achieved through originality, independent or contrarian thinking, and making connections from disparate information.  Bill Miller, the former Legg Mason portfolio manager, emphasizes the importance of making […]

September 15, 2019

15 Investing Lessons


Circle of Competence, Decision Making, Expected Value, Filter, Investment Process, Opportunity Cost, Portfolio, Probability, Psychology, Risk

1. Experience may not be a good teacher Most elderly who died in Hurricane Katrina dies not because of their health, but because of confidence and denial. They have survived several hurricanes over their lifetime, so they believe Hurricane Katrina is no exception. Experience can create a close attitude that prevents us from seeing things […]

January 2, 2019

What can BASE jumping disaster teach investors about risk?


Circle of Competence, Decision Making, Get started, Margin of Safety, Risk

PDF version here: http://bit.ly/2djuXez National Geographic recently ran a story – Why Are So Many BASE Jumpers Dying? looking at reasons behind the rise in BASE jumpers fatalities, which I believe can offer investors some important lessons on how to think about risk. The risks that investors encounter is no less different from BASE jumpers. They […]

September 25, 2016