Every year at about this time, Josh Brown of the Reformed Broker compiles his list of “What I Learned” over the course of the year. This year’s list didn’t disappoint. I recommend you read the entire list here, but I included some of my favorites below:
Jim Lebenthal (Lebenthal Wealth Advisors): investing requires the courage of your convictions. You can’t be blown this way and that by whatever style (or fad) is prevalent. More than ever, you have to believe in yourself, especially when few others seem to. It is mandatory to good investing that you do so
Jay Yarow (Business Insider): you should love what you do rather than do what you love. A lot of people say, “Pursue your dreams/passions.” I think successful people don’t do actually do that. Instead they fall in love with what they’re doing, which is much more important.
Sean McLaughlin (StockTwits): the only true edge is buying power.
Joshua M. Brown (TV Personality, Emotional Support Animal): I miss the good old days, when gasoline was expensive, Adele was contained and the scariest thing politically was Herman Cain’s economic plan. Also, I learned Carrie Fisher was still alive, congrats on that.
Patrick O’Shaugnessy (Investor’s Field Guide): being a value investor in the F.A.N.G. era is no fun at all.
Barry Ritholtz (North Shore, LI): being patient as an investor, is much, much harder than it sounds.
Russian Bear (Artko Capital): apparently losing your shirt in sub prime debt is still cool.
Charles Sizemore (Sizemore Insights): a high debt load can turn a safe, stable investment into a very unsafe, unstable investment. Also, if success comes too soon or too easily, you cherish it a lot less and it slips through your fingers a lot easier. And a good client is more like a partner than a customer. [I had to include my own! – CLS]
Mark Yusko (Morgan Creek Capital Management): trying to catch falling knives always results in lost fingers… Better to let the knife hit the floor, bounce around a little and when it stops moving go pick it up. Also, John Burbank’s favorite saying “price is a liar” has been proven once and for all and has actually been exacerbated by the rise of the machines (algos & HFT) such that prices moves from extreme to extreme, rarely spending any time around fair value.