Tutorial 86-90 Recap
1) OWN COOKING - the Investment Masters tend to have a very high proportion of their net worth in the fund that they manage. This ensures the managers interests are aligned with the investors. The Investment Masters eat their own cooking.
2) BUY GOLD? - the difficulty with gold is estimating what it is worth. Unlike a company, gold provides no return or cash flow to the investor. Gold is only worth what someone else is prepared to pay for it. It is only a store of wealth to the extent it acts as a store of wealth. For these reasons, it's hard to get a margin of safety with gold.
3) AGE - over time, the more market experiences, learning and wisdom that accrues. Provided an investor remains open minded and continues to learn, investors should improve with age.
4) CHARTS - charts can be useful tools and have been successfully incorporated into investment processes by many of the Investment Masters.
5) IMAGINE ALTERNATIVE SCENARIOS- there is always the possibility of more than one investment outcome. It's important to contemplate different investment outcomes to help manage risk. It can also be useful to consider investments in a different time frame to help provide an unbiased view and provide insights the market may be missing.