Keeping A Permanent Loss Of Capital

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Having pet peeves cannot only be related to things that annoy or anger you in your daily life, but can also be in investing as well. The pet peeves have a list of ten things that were said or done in the industry or said about the industry. The author discusses a list of peeves that share three characteristics: (1) They are about investing or finance in general, (2) they are about beliefs that are very commonly held and often repeated, and (3) they are wrong or misleading and they hurt investors. The beginning five points would be grouped together in one section. First, peeve is Volatility” Is for Misguided Geeks; Risk Is Really the Chance of a “Permanent Loss of Capital”, says there are more fair methods to measure the chance of a…show more content…
Essentially, with a methodical approach, value and momentum are both great long-term strategies, but you do not want to be a impetus investor at a value time horizon. Fourth, Whodunit?, he refers to two events, (1) a real estate/credit bubble in prices that, upon bursting, precipitated (2) a massive financial crisis. The collapse of the real estate/credit bubble did not have to lead directly to the financial crisis to say who is to blame for these events. Fifth, I Would Politely Request People Stop Saying These Things, tells that certain words should not be used because it has different meaning like arbitrage means certain points in education, whereas trade we kind like. The second set of points starting with the sixth point. Sixth, The First Step Is Admitting It, has separate implication because it about the form over substance from market capitalization. Seventh, To Hedge or Not to Hedge ?, is that hedge fund reporting, by both the mass media and industry, is practically always wrong, but in a interestingly mixed way reliant on market direction and the preference of the analyst. His hope is that reporting and the whole hedge fund industry can improve and have a better value

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