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Exploring the Essential Features of “The Art Of Investing Lessons From Historys Greatest Traders“
Title: The Art of Investing: Lessons from Historyβs Greatest Investors
Overview:
Stock market experts often emphasize long-term investment and portfolio diversification, but history shows exceptions. Explore the captivating world of finance with this 24-lecture course featuring over 30 remarkable investors who defied conventional wisdom. Led by award-winning Professor John M. Longo of Rutgers University Business School, discover the unique paths taken by financial giants and learn invaluable lessons for today’s investors.
Notable Investors:
- Jesse Livermore: Legendary speculator who successfully shorted the market pre-1907 and 1929 panics but met tragedy due to neglecting his own trading rules.
- Warren Buffet: World-renowned for value investing, Buffet’s long-term approach seeks high-quality companies at a discount, emphasizing stock ownership as a business.
- Jack Bogle: Revolutionized investing with index funds, low-fee mutual funds tracking markets without active management, challenging traditional views.
- Linda Bradford Raschke: Overcame obstacles as a female trader with a music composition background to found a highly successful hedge fund, crediting her musical training for market pattern recognition.
Investment Strategies Covered:
- Growth Investing: Philip Fisher and T. Rowe Price’s strategy focuses on holding companies with exceptional growth potential.
- Small-Cap Stocks: Michael Burry’s risky trade depicted in “The Big Short” built his fortune by finding discounted small-cap companies.
- Hedge Funds: A. W. Jones pioneered risk reduction through blended investments; Ray Dalio and Paul Tudor Jones excelled in this challenging field.
- Corporate Raiders: Activist investors like Carl Icahn, Dan Loeb, and Bill Ackman reap rewards from mismanaged companies.
- Currency Trading: George Soros made a billion dollars in a day by betting against the British pound in the currency market.
- Quantitative Analysis: James Simons, the “quant king,” used mathematical models for market advantage.
Words of Wisdom from Investors:
- “Beware of inside information… No one is going to hand you a lot of easy money.” – Jesse Livermore
- “My favorite holding period is forever.” – Warren Buffet
- “Everyone has the brainpower to make money in stocks. Not everyone has the stomach.” – Peter Lynch
- “If you have a losing position that is making you uncomfortable, the solution is very simple: Get out.” – Paul Tudor Jones
- “Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker!” – Linda Bradford Raschke
- “There is no point in being confident and having a small position.” – George Soros
Practical Advice and Common Mistakes:
Explore the contrarian style of investing with David Dreman, who warns against biases such as the disposition effect, representative bias, and overreaction bias. Learn from these pitfalls to make informed investment decisions.
Investment Checklist and Final Message:
Professor Longo provides a detailed investment checklist, distilling the experiences of the investors. His ultimate message: “Your investment philosophy and approach should match your personality, skills, risk tolerance, and resources.” This course provides a wealth of examples to guide your investment journey.
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