Investing is a probabilistic business. Every once in a while, it’s sort of like you’re throwing six-sided dice, and anything except a one or a two, you’re doing well. Statistically speaking, you throw the dice enough times, you’re going to throw a one or a two five times in a row, and you’re going to look pretty foolish, right? Whitney Tilson Read Quote
You just have to approach every day and say, ‘If you were starting fresh today, what would my portfolio look like?’ So that’s how we think about it. Whitney Tilson Read Quote
It’s human nature: for most investors, the pain of stocks going down is more tangible than the joy of when they go up. The common impulse is to do something – anything – to minimise the pain. Whitney Tilson Read Quote
It’s difficult to fix a truly broken business, but when it happens, the returns can be extraordinary. Whitney Tilson Read Quote
One can’t be a successful investor without a healthy dose of confidence. To commit your own and others’ hard-earned capital requires conviction, and conviction requires confidence. But as with fine brandy or coffee ice cream, too much of a good thing can be problematic. Whitney Tilson Read Quote
To a large extent, equity investors put their hard-earned capital into the hands of management and count on it being employed skilfully and honestly. When that doesn’t happen, losses typically follow. Whitney Tilson Read Quote
When reviewing one’s portfolio, it is important to be aware of common mental mistakes that may lead to bad decisions. The most powerful is commitment bias, which, as manifested in investing, is the tendency to fall in love with one’s stocks. Whitney Tilson Read Quote
There is a natural tendency for investors to devote a significant majority of their time to finding new ideas. After all, uncovering great companies selling at great prices is the lifeblood of successful investing. But in the never-ending quest for the next great idea, investors often give short shrift to their existing investments. Whitney Tilson Read Quote
I have encountered thousands of value investors over the years and am constantly struck by their differences – and their similarities. Whitney Tilson Read Quote
