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Step into the world of @jposhaughnessy
I organized and distilled his last 3,000 tweets into a summary of his big ideas, in two parts:
Part
: Successful Investing - Philosophy & Process
I organized and distilled his last 3,000 tweets into a summary of his big ideas, in two parts:
Part
: Successful Investing - Philosophy & Process
Successful investing is simple, but it’s not easy…
There’s no sure thing
There’s no secret to success
And there's a lot we know that just ain’t so
There’s no sure thingThere’s no secret to successAnd there's a lot we know that just ain’t so
Humans are designed to be bad investors…
We’re crushed by uncertainty
We’re not disciplined when things are bad
And we’re emotional when our money’s at stake
We’re crushed by uncertaintyWe’re not disciplined when things are badAnd we’re emotional when our money’s at stake
Successful investing defies human nature…
It combats quirks of the mind
It adopts external fail-safe measures
And it sticks to a plan
(The last sustainable advantage is to arbitrage our nature)
It combats quirks of the mind It adopts external fail-safe measuresAnd it sticks to a plan (The last sustainable advantage is to arbitrage our nature)
Check your ego and search for the truth…
(Truth doesn’t abide big ego)
Have a beginner’s mind and keep it wide open
Happily accept most of your beliefs are wrong
Recognize how little you actually know and admit it
The smartest of the smart are often the least arrogant
(Truth doesn’t abide big ego)Have a beginner’s mind and keep it wide openHappily accept most of your beliefs are wrongRecognize how little you actually know and admit itThe smartest of the smart are often the least arrogant
Actively develop a strong mental attitude…
Don’t concern yourself with what others are saying
Don’t attach self-worth to things people aspire to
Allow yourself to be self-reliant
Have control over your own fate
And above all, believe you can do it
Don’t concern yourself with what others are sayingDon’t attach self-worth to things people aspire toAllow yourself to be self-reliant Have control over your own fateAnd above all, believe you can do it
Think long-term…
Take the long view on returns
Do not overweight short-term events
Do not succumb to short-term volatility
Pay attention to what might happen in ten or twenty years
Take the long view on returns Do not overweight short-term eventsDo not succumb to short-term volatility Pay attention to what might happen in ten or twenty years
Unglue yourself from the present…
The future flows from the past, and cycles repeat, with variations
Read original books, journals, news articles, and diaries from other eras
Focus on the ones that ring true
Study how markets have behaved and what moved people to act
The future flows from the past, and cycles repeat, with variationsRead original books, journals, news articles, and diaries from other erasFocus on the ones that ring true Study how markets have behaved and what moved people to act
Learn, learn, and learn some more…
Read broadly outside of finance
Read more than almost everyone else
Study as much as you can about investing
Seek to understand those you might have an aversion to
Read broadly outside of financeRead more than almost everyone elseStudy as much as you can about investingSeek to understand those you might have an aversion to
Build on what you learn…
Sort out gems of knowledge
Separate wheat from the chaff
Make a never-ending commitment to gain knowledge
Read, synthesize, abandon ideas that aren't working, try new ones, read some more
Sort out gems of knowledge Separate wheat from the chaffMake a never-ending commitment to gain knowledgeRead, synthesize, abandon ideas that aren't working, try new ones, read some more
Challenge your own beliefs…
Don’t wed yourself to an idea or treasured belief
Constantly and ruthlessly challenge each belief, no matter how basic
Guard your brain from noxious ideas living there rent-free
The more certain you sound, the less certain you should be
Don’t wed yourself to an idea or treasured belief Constantly and ruthlessly challenge each belief, no matter how basicGuard your brain from noxious ideas living there rent-freeThe more certain you sound, the less certain you should be
Discard beliefs that are no longer useful…
Ruthlessly remove bad ideas and advice
Improve your mental maps by deleting misperceptions
Throw away poor filters and replace them with better ones
Ruthlessly remove bad ideas and adviceImprove your mental maps by deleting misperceptionsThrow away poor filters and replace them with better ones
Ask why a lot (then keep asking why)…
Continually ask "Why do I believe this?"
Continually ask, “Am I seeing things correctly?"
People who don’t ask questions don’t get answers
Continually ask "Why do I believe this?"Continually ask, “Am I seeing things correctly?" People who don’t ask questions don’t get answers
Challenge conventional thought…
Most historical beliefs and commonly accepted “truths” have been wrong
Many of a today’s cherished beliefs are castles built on sand
Don’t accept these default settings
Remove yourself from the dominant thinking of our era
Most historical beliefs and commonly accepted “truths” have been wrongMany of a today’s cherished beliefs are castles built on sandDon’t accept these default settingsRemove yourself from the dominant thinking of our era
In other words, don’t follow the crowd…
Be willing to hold uncomfortable opinions
Make your investment portfolio very different than the market
(Just know this will create far higher career risk that the alternative)
Be willing to hold uncomfortable opinionsMake your investment portfolio very different than the market (Just know this will create far higher career risk that the alternative)
Document your thoughts…
Keep a handwritten journal
Record your decisions and beliefs over time
Write about every worry, frustration, and uncertainty
Date it, put it away, and review it later
You’ll be surprised by your words after pressure & emotion have dissipated
Keep a handwritten journal Record your decisions and beliefs over timeWrite about every worry, frustration, and uncertaintyDate it, put it away, and review it laterYou’ll be surprised by your words after pressure & emotion have dissipated
Be dispassionate in your judgment…
Maintain a “we’ll see” disposition
Never let emotions dictate decisions
You can negate your entire track record by just once emotionally overriding your investment model
Real discipline kicks in when things are going against you
Maintain a “we’ll see” disposition Never let emotions dictate decisionsYou can negate your entire track record by just once emotionally overriding your investment modelReal discipline kicks in when things are going against you
Search instead for a methodology that’s…
Simple
Passive
Concrete
Cohesive
Consistent
Systematic
Explainable
Rules-based
To the point
Time-tested
And quantitative
(Don't believe willpower will allow you to overcome your fears and emotions)
SimplePassiveConcreteCohesiveConsistentSystematicExplainableRules-basedTo the pointTime-testedAnd quantitative(Don't believe willpower will allow you to overcome your fears and emotions)
Enjoy vivid stories, but ask for proof…
Invest in dull facts
Apply analytical tests
Favor reams of statistical data
Look for evidence that odds are in your favor
Prefer impersonal statistics to descriptive data
Prefer options that have huge empirical support
Invest in dull facts Apply analytical tests Favor reams of statistical dataLook for evidence that odds are in your favor Prefer impersonal statistics to descriptive dataPrefer options that have huge empirical support
Don’t chase sugar highs…
Ignore predictions
Don’t watch television news
Don’t pay attention to financial forecasts
Distractions sap your mental and even physical energy
People tend to take recent events and forecast similar returns into the future
Ignore predictionsDon’t watch television newsDon’t pay attention to financial forecastsDistractions sap your mental and even physical energyPeople tend to take recent events and forecast similar returns into the future
Take advantage of the spot Karma places you…
Look for rare, favorable, and fortunate circumstances…
Recognize when a situation not of your own making is conducive to a favorable outcome
Jump in, act quickly, & try things
Smart luck involves awareness followed by action
Look for rare, favorable, and fortunate circumstances…Recognize when a situation not of your own making is conducive to a favorable outcomeJump in, act quickly, & try thingsSmart luck involves awareness followed by action
Persevere…
Remember, this too shall pass
Persist even after you're knocked down ten times
Continue on in a rigorous, unemotional, and consistent manner
Remember, this too shall passPersist even after you're knocked down ten timesContinue on in a rigorous, unemotional, and consistent manner
Enjoy and embrace the music while it lasts…
Be a pragmatic optimist
Even if you're wrong, you'll enjoy life a lot more
Be open, be kind, treat people well, and Karma will get your back
Be a pragmatic optimist Even if you're wrong, you'll enjoy life a lot moreBe open, be kind, treat people well, and Karma will get your back
Find the rest here...
Part
: Quotes on Investing Mindset and The Search for Truth
Follow me for more Big Idea Summaries, and massive thanks to @yawyr_vk for compiling Jim's best threads!
https://letter.substack.com/p/the-best-of-jim-oshaughnessy-big
Part
: Quotes on Investing Mindset and The Search for TruthFollow me for more Big Idea Summaries, and massive thanks to @yawyr_vk for compiling Jim's best threads!
https://letter.substack.com/p/the-best-of-jim-oshaughnessy-big
