Invest like the Best (eBook)

The Low-Risk Road to High Returns

Chris Belchamber (Autor)

eBook Download: EPUB

2021 | 1. Auflage
202 Seiten
Lioncrest Publishing (Verlag)
978-1-5445-1874-9 (ISBN)

Infos

Invest Like the Best. The Low-Risk Road to High Returns. The best practices of the most successful investors-with winning track records that span decades-can be clearly defined, easily understood, and simply measured in real time. But, very few people take the time to understand and follow them. After nearly forty years as an analyst, trader, and investor, Chris Belchamber reveals the most common pitfalls, barriers, habits, and beliefs that can send investors in the wrong direction, with sometimes devastating consequences. Learn how to recognize and avoid these issues in your own investing as you discover more than twenty best investor Insights' and find the real relationship between risk and return. Transform your own results and experience as you learn from the greatest minds of investing history. 'The investor's chief problem, and his worst enemy, is likely to be himself. In the end, how your investments behave is much less important than how you behave.' -Benjamin Graham

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Invest Like the Best. The Low-Risk Road to High Returns. The best practices of the most successful investors-with winning track records that span decades-can be clearly defined, easily understood, and simply measured in real time. But, very few people take the time to understand and follow them. After nearly forty years as an analyst, trader, and investor, Chris Belchamber reveals the most common pitfalls, barriers, habits, and beliefs that can send investors in the wrong direction, with sometimes devastating consequences. Learn how to recognize and avoid these issues in your own investing as you discover more than twenty best investor Insights"e; and find the real relationship between risk and return. Transform your own results and experience as you learn from the greatest minds of investing history. "e;The investor's chief problem, and his worst enemy, is likely to be himself. In the end, how your investments behave is much less important than how you behave."e;-Benjamin Graham

Textauszug

Introduction

“Gaining both Wisdom and Wealth in life are worthy goals. Wealth often does not lead to wisdom. Wisdom more often leads to wealth. Wisdom is permanent; Wealth is temporal. So which one is your primary aim?”1

—Peter Brandt

In this book, I will guide you through the wisdom needed to generate and preserve wealth. By the end, you will have seen the path of the most successful investors. The wisdom is hidden in plain sight, but as Henry David Thoreau said, “It’s not what you look at that matters, it’s what you see.” What you don’t see is costing you the wealth you want. The Best Investors have already shown the way.

Whether your investment journey has just begun or you have decades of experience, it is all too easy to fall into believing commonly quoted and overly simplistic assumptions about investing. However, the crucial complexity of markets lies beyond unsubstantiated myths and mantras. The wisdom and experience of the great investment practitioners—our Best Investors—addresses market reality, exposes confused thinking, and reveals a clearer and surprisingly simple structure that can be easily understood and adopted.

In life and investing, I have found that the best way to evolve starts with finding out who is best at what they do, understand it, and then incorporate it into your own process.

Investing is all about numbers, so it isn’t hard to identify the few who qualify to be called “Best Investors.” This group includes Ray Dalio, Seth Klarman, Stan Druckenmiller, Jim Simons, and others whose insights inform my own investment process and this book. The secrets, though, lie beyond just the numbers they have achieved over decades. For deep insight into how they achieved durable success, you also need to look at their journeys, discoveries, and choices—and what they all have in common.

Doing so will focus your investment process and remove the mystery from the big investing questions that come up all the time, which this book will address. So, here are some questions I will ask again at the end of the journey to Invest Like the Best. At the end of this book, I believe that most investors will consider them in a new light.

The Big Investment Questions

Risk and Return

1. Does higher risk lead to higher return?
2. Do you need more than just a return to measure whether your investment process is aligned with the Best Investors?
3. What part has risk and luck played in your return, and what part will they likely play in the future?

Measurement

1. What are the best-practice measurements of your investment process and progress?

Decision-Making

1. How far from optimal is your own investment thinking and decision process?
2. In investing, do you need to take charge of your own best interest? Can that be made simple?

Other Strategic Elements

1. Do you see rules-based or systematic computer-driven investing as a useful addition?
2. Is passive investing aligned with the Best Investors?

The goal of this book is not to criticize other professionals. Still, you need to know that many financial advisors, famous investors, and so-called experts are not aligned with the Best Investors on the answers to these essential questions. At the end of this journey, though, you will be. You’ll gain the clear metrics and understanding that sets apart the few Best Investors from everyone else.

That’s why I wrote this book: to empower you. Whether you choose to manage your own assets or work with an investment manager, I want to give you the tools to enable you to stay on the path to prosperity. I particularly want to keep you out of trouble, so you don’t learn your investment lessons the hard way and waste crucial time. To succeed, you need more than hope, unsubstantiated beliefs, and insufficient due diligence. You need to know what works and why.

In my nearly forty years as an analyst, trader, and investor, I have written a book published by Credit Suisse First Boston, been promoted to Managing Director on the proprietary trading desk of JPMorgan in London, and talked to many institutional as well as retail investors. I have worked through many common pitfalls, habits, and beliefs that can misdirect or block unwary investors. This book will give you a productive framework to avoid them all.

The book is laid out in three parts, each with four chapters, and each chapter ends in a summary. (If you want just a quick take, you can start with that summary.) The chapters themselves are filled with quotes and direct advice from the Best Investors; I’ve also distilled the main takeaways in Part I and Part II as “Best Investors Insights” so that you can easily review them. All twenty-four insights are listed in an appendix at the end of the book. In the chapters, I’ve included charts, visuals, and graphics to better explain my points, as well as additional resources you can look at to deepen your knowledge.

The intention is to make the journey to “invest like the best” as accessible as possible.

Here’s a roadmap of what’s to come:

Part I: Develop a Best Investors Mindset

As the Best Investors show us, durable advantage comes from developing an optimal mindset.

Chapter 1: Be fully aware of the investment challenge

With a quick look at our discretionary biases, this chapter shows us how to be grounded in the importance of responsibility, understand the limitations of focusing solely on returns, embrace uncertainty, and realize how many cognitive biases can influence your decision-making process.

Chapter 2: Avoid self-sabotage: Build an investment mindset framework

Here, a Best Investor mindset framework is developed. It starts with the key question of whether our own thinking is consistently rational. Investors can benefit from understanding the perspective of different economic approaches and the difference between theory and practice. This leads on to how the hardwiring of the brain reveals a framework to improve decision-making.

Chapter 3: Benefit from systematic investing

Rational and strategic thinking can be strongly supported and further developed by systematic investing. Specifically, two systems reveal how this can extend and transform your capabilities.

Chapter 4: Avoid misdirection: What can happen if you just chase returns

The final stage in creating an optimal mindset is learning who and what to trust. Through lessons from the collapse of one of the world’s biggest hedge funds, LTCM, several filters emerge and reveal what needs to be done to protect your capital.

Part II: Risk and Return, Dynamic Compounding, and Assessment

With the optimal mindset now established from Part I, Best Investor practices are explained and revealed. Best Investors are crystal clear about investment principles and metrics. This leads to a further transformation in investment perspectives and strategic thinking and assessment.

Chapter 5: Best Investors are crystal clear about priorities and metrics

This chapter will explore how Best Investor metrics flow directly from basic concepts of expected return and breaking down return into its more important components. In general, this differs from the approach of most financial advisors.

Chapter 6: Master the essential math of investing: Dynamic compound interest

A clear understanding of the dynamics of compound interest is essential and reinforces the Best Investor imperative of how capital preservation and compounding work together in producing high long-term returns.

Chapter 7: Empower yourself through measurement

Now, it becomes clearer how to look at allocation and investment choices: through Best Investor metrics. How your performance is reported is vital to your understanding of whether you are on track. All you need is a simple chart. This immediately shows you where you stand and what track you are on.

Chapter 8: Know the investment myths and heresies with Best Investor analysis

With the Best Investor metrics in place, common strategies can be reexamined through a new lens. With our newfound knowledge, standard strategies begin to look like myths, while heresies start to make more sense.

Part III: Invest Like the Best

The hard work of the first two parts is rewarded as the metrics are put into practice in investment decisions. This final part explores and develops the low-risk road to high returns.

Chapter 9: Money management matters

This chapter shows how just taking publicly available billionaire positions and applying Best Investor principles in money management can help lead to remarkable transformations in results.

Chapter 10: Investment...

Produkt-Details

• Erscheint lt. Verlag: 23.2.2021
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• ISBN-10: 1-5445-1874-9 / 1544518749
• ISBN-13: 978-1-5445-1874-9 / 9781544518749