Are You An Inside or Outside Zebra?

A favorite value-investing book of mine goes by the title “A Zebra in Lion Country”. It was written by Ralph Wagner who formerly managed the Colombia Acorn Fund where he put together a solid track record of 16.5% CAGR over a 20-year period. The book gets its title from this metaphor on investing that Wagner […]

My Favorite Investing Resources

I’ve received many questions about where to start, books to read and podcasts to follow for value investing. While the following addresses their specific request, I think this list of resources helps all investors. Traders learn from value guys. Value guys learn from momentum traders. We all learn from each other. I’ve broken down my […]

Plato’s Cave and How I Lost $127,562.06

Are you familiar with Plato’s allegory of the man in the cave? It’s about a man deep in a cave who’s been chained to a wall his entire life. He’s never seen the light of day and doesn’t know there’s an outside world. In this cave, out of the man’s purview, there’s a fire with […]

Question EVERYTHING: A Recent Thing I From One of the Better Traders I Know

There’s been a few things that have been rattling around in my brain-housing group that I wanted to get down on paper and share with everybody. What sparked this flywheel of thought is something my buddy and resident systems trader here at MO, ChrisD (@ChrisDMacro) tweeted a few weeks ago. Here it is. Chris joined […]

Ditch the Predictions and Play the Odds

We are in the business of making mistakes. The only difference between the winners and the losers is that the winners make small mistakes, while the losers make big mistakes. ~ Ned Davis When I became a winner, I said, “I figured it out, but if I’m wrong, I’m getting the hell out, because I […]

The Evolution of Political Regimes

Plato, using Socrates as his mouthpiece, wrote the following condemnation of Athenian democracy in his Republic: [The citizens] contemptuously rejected temperance as unmanliness… Insolence they term breeding, and anarchy liberty, and waste magnificence, and impudence courage… The father gets accustomed to descend to the level of his sons and to fear them, and the son […]

Adaptability Versus Optimization: The Cockroach Approach

As we trudge onward in the longest bull market in US history, I thought it wise to share with you a section from an old article, written by Richard Bookstaber, titled “Risk Management in Complex Organizations”. The article talks about risk. Particularly, that most pernicious kind of risk… The kind we can’t foresee. Volatility selling, […]

How to Identify the Consensus

Here’s John Percival, writing in his book The Way of the Dollar, describing how to identify the Consensus and act as a Contrarian.  “Remember the last time you sold a currency at what proved to be the bottom, or bought at the exact top? That wasn’t just bad luck — nor even just foolishness. You […]

There Are No Limits

“Bruce [Lee] had me up to three miles a day, really at a good pace. We’d run the three miles in twenty-one or twenty-two minutes. Just under eight minutes a mile [Note: when running on his own in 1968, Lee would get his time down to six-and-a-half minutes per mile]. So this morning he said […]

Trader Vic’s Market Methods

I first came across Trader Vic over a decade ago while meandering through an old book store. My dog-eared and excessively highlighted copy still sits on the bookshelf next to my desk. It’s one of the few trading books I regularly turn to for a reread. The book covers everything from trade management to market […]