50 years of investment management lessons from investment master Peter Bernstein:
The trick of successful investment is not to ask you to become the most popular stock selection master, or the most accurate prediction master, or the best model developer.
These victories are momentary, and they are like clouds in the eye. The key to investment success is to survive! The rest is the king!
Investment success is easier said than done. To really survive for a long time, you need to have a very large amount of energy and be able to accept your own mistakes.
Because we are human beings, not gods, we often make more mistakes than we expected.
We can‘t know the future in advance, but understanding this can help us know that mistakes are inevitable and normal.
We make mistakes not because of those terrible tragedies, nor because of terrible loopholes in reasoning, or even because of bad luck as in most cases.
The reason why we make mistakes is that mistakes are the privilege of action, and any action depends on the completely unpredictable future...
Classic aphorisms:
1. Risk is that you don’t know what you are doing.
Two. The core of investment is not to pursue profits, but to manage risks.
3. There is no profit without risk. All benefits are compensation for taking risks.
4. The greatest certainty of the market is that it is always full of uncertainty.
5. Admitting one‘s ignorance is the beginning of all rational investment.
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