His instructions were simple. There was only one rule. They could only invest in their ten best ideas.
My notes on ‘The Art of Execution’ by Lee Freeman-Shor.
First heard about this book from @IvanTanner4 interview on @Trawlingfor10x
His instructions were simple. There was only one rule. They could only invest in their ten best ideas.
Yet, almost all of them did not lose money. In fact, they still made a lot of it.
Success in investing is down to how great ideas are executed.
On a losing trade there were:
Rabbits: Caught in the headlights and do nothing
Assassins: Ruthlessly cut their losses
Hunters: Systematically buy more
Constantly adjusting their mental story and time frame so that the stock always looked attractive.
Anchoring, primacy error and ego also played a part.
Have a plan prior to purchase
When stock falls, reassess and either sell out or buy more.
Position size to allow for more purchases
Always seek out opposing views and be humble.
Assassins invest by rules, drawn by experience and beliefs.
When losing, they would always let the rules, not their emotions or feelings, drive their decisions.
a) Killed all losers at 20-33%
Or
b) Killed losers after a fixed amount of time due to time cost of money.
64% were sold within 6 months of purchase.
“Large losses kill you quickly, while small losses kill you slowly.”
Rather than killing the investment and forgetting about it, they stalked their prey – watching it get steadily weaker and lassoing another limb each time it stumbled.
Contrarians make natural Hunters; to be one requires patience and discipline.
In the words of Mae West, “Too much of a good thing can be wonderful.”
Don’t be a Rabbit.
Raiders get out with a small profit based on a lurking fear of danger.
They suffer premature evacuation.
A high success rate is useless when partnered with a poor payoff profile.
Embrace the possibility of winning big or be doomed.
People are risk-averse when winning – but risk-seeking when losing.
You effectively have an investment style that combines significant downside risk with insignificant upside potential.
Connoisseur: They enjoy every last drop.
Connoisseurs were the most successful investment tribe amongst those working for Lee.
They drank the odd bottle now and then, to tide them over – but otherwise they sat back and waited.
More from Culture
.@bellingcat's attempt in their new book, published by
@BloomsburyBooks, to coverup the @OPCW #Douma controversy, promote US and UK gov. war narratives, and whitewash fraudulent conduct within the OPCW, is an exercise in deception through omission @marydejevsky @freddiesayers
1) 2000 words are devoted to the OPCW controversy regarding the alleged chemical weapon attack in #Douma, Syria in 2018 but critical material is omitted from the book. Reading it, one would never know the following:
2) That the controversy started when the original interim report, drafted and agreed by Douma inspection team members, was secretly modified by an unknown OPCW person who had manipulated the findings to suggest an attack had occurred. https://t.co/QtAAyH9WyX… @RobertF40396660
3) This act of attempted deception was only derailed because an inspector discovered the secret changes. The manipulations were reported by @ClarkeMicah
and can be readily observed in documents now available https://t.co/2BUNlD8ZUv….
4) .@bellingcat's book also makes no mention of the @couragefoundation panel, attended by the @opcw's first Director General, Jose Bustani, at which an OPCW official detailed key procedural irregularities and scientific flaws with the Final Douma Report:
@BloomsburyBooks, to coverup the @OPCW #Douma controversy, promote US and UK gov. war narratives, and whitewash fraudulent conduct within the OPCW, is an exercise in deception through omission @marydejevsky @freddiesayers
In response to @marydejevsky seemingly bad faith questions about Bellingcat on @unherd I've written a response providing details of where Bellingcat came from, and why it is like it is https://t.co/5rCsSwpcAm
— Eliot Higgins (@EliotHiggins) February 15, 2021
1) 2000 words are devoted to the OPCW controversy regarding the alleged chemical weapon attack in #Douma, Syria in 2018 but critical material is omitted from the book. Reading it, one would never know the following:
2) That the controversy started when the original interim report, drafted and agreed by Douma inspection team members, was secretly modified by an unknown OPCW person who had manipulated the findings to suggest an attack had occurred. https://t.co/QtAAyH9WyX… @RobertF40396660
3) This act of attempted deception was only derailed because an inspector discovered the secret changes. The manipulations were reported by @ClarkeMicah
and can be readily observed in documents now available https://t.co/2BUNlD8ZUv….
4) .@bellingcat's book also makes no mention of the @couragefoundation panel, attended by the @opcw's first Director General, Jose Bustani, at which an OPCW official detailed key procedural irregularities and scientific flaws with the Final Douma Report:
