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Mark Tier

The Winning Investment Habits of Warren Buffett & George Soros

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Warren Buffett, and George Soros all started with nothing. They’re the world’s richest investors — and they built their billion-dollar fortunes solely by investing.
Was it luck? Something in their genes? Connections and “insider information” that the average investor can’t get?
NO! says Mark Tier in this path-breaking book. He discovered that — despite their radically different investment styles — they both practice exactly the same mental habits and strategies religiously. What’s more, Peter Lynch, Benjamin Graham, Sir John Templeton, Bernard Baruch, and all the other successful investors and traders he has studied and worked with follow them too. Without exception.
Their mental habits and strategies fly in the face of the conventional Wall Street “wisdom.” For example:
► Buffett and Soros don’t diversify. When they buy they always “buy as much as they can.”
► Both will tell you that making predictions about the market or the economy has virtually nothing to do with their success.
► They’re not focused on the profits they expect to make. Indeed, they’re not investing for the money at all.
► They don’t believe that to make big profits you must take big risks. Indeed, they are far more focused on not losing money than on making it.
► Their beliefs about what makes markets tick are amazingly similar — and diametrically opposed to academic theories like the “Efficient Market Hypothesis” and the “Random Walk” which they both view with contempt.
► And all those research reports that Wall Street churns out — they never read them. They don’t give a hoot what other people think.
In identifying the winning investment habits that led the world’s richest investors to phenomenal success, Mark Tier has uncovered for the first time the habits that ALL successful investors share.
What’s more, every one of these winning habits is something you can easily learn yourself.
And it makes no difference whether you look for stock market bargains like Warren Buffett, trade currency futures like George Soros, invest in real estate, antiques or collectibles, use technical analysis, buy on dips or buy on breakouts, use a computerized trading system — or just want to salt money away safely for a rainy day. Adopt the winning investment habits of the world’s richest investors and you too can make more money more easily than you ever thought possible.
“This book is based on a stunningly simple, but highly intelligent and effective idea: Analyze the methods of Buffett and Soros–probably the two most successful investors of our time–and see exactly why they're so successful. Tier’s approach is especially valuable because Soros’s and Buffett’s methods are often so different–yet, as Tier shows, the keys to their success are amazingly similar. Great book – something I rarely say about this genre.” — Doug Casey, editor, International Speculator
“Mark Tier’s mapping of investment genius is simply masterful — clean and true. What lifts his book even further above the rest, though, is his infectious delight in discovery and clarity of explanation as he hands you the attitudinal and behavioral keys to becoming the consummate investor.” — David Gordon, author, Expanding Your World: Modeling the Structure of Experience
“Tier has written an excellent book. His chapter on exit strategies  alone (knowing when to sell even before you buy) is worth the price of the book.” — Dr. Mark Skousen, editor, Forecasts & Strategies
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2006
Godina izdanja
2006
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  • Rasmus Kjærboje citiraoprije 4 godine
    He said there were only three times to sell a stock. The first was when you found you’d made a mistake, and the company didn’t meet the criteria after all. The second time was when the company ceased to meet the criteria: for example, a less able management assumed control; or, the company had grown so big it could no longer grow faster than the industry as a whole. And the third was when you came across a fantastic opportunity and the only way you could buy it was to sell something first
  • Rasmus Kjærboje citiraoprije 4 godine
    To Soros, our distorted perceptions are a factor in shaping events. As he puts it, “what beliefs do is alter facts”57 in a process he calls reflexivity, which he outlined in his book The Alchemy of Finance
  • Rasmus Kjærboje citiraoprije 4 godine
    That sends stocks up further, making investors even wealthier, so they spend even more. And so on it goes. This is what Soros calls a “reflexive process” — a feedback loop: a change in stock prices has caused a change in company fundamentals which, in turn, justifies a further rise in stock prices. And so on.

    You have no doubt heard of this particular reflexive process. Academics have written about it; even the Federal Reserve has issued a paper on it. It’s known as “The Wealth Effect.”

    Reflexivity is a feedback loop: perceptions change facts; and facts change perceptions. As happened when the Thai baht collapsed in 1997.

    In July 1997 the Central Bank of Thailand let its currency float. The bank expected a devaluation of around 20%; but by December the baht collapsed from 26 to the US dollar to over 50, a fall of more than 50%.

    The bank had figured out that the baht was “really worth” around 32 to the dollar. Which it may well have been according to the theoretical models of currency valuation. What the bank failed to take into account was that floating the baht set in motion a self-reinforcing process of reflexivity that sent the currency into free-fall.

    Thailand was one of the “Asian Tigers,” a country that was developing rapidly and was seen to be following in Japan’s footsteps. Fixed by the government to the US dollar, the Thai baht was considered a stable currency. So international bankers were happy to lend Thai companies billions of US dollars. And the Thais were happy to borrow them because US dollar interest rates were lower.

    When the currency collapsed, the value of the US dollar debts companies had to repay suddenly exploded…when measured in baht. The fundamentals had changed.

    Seeing this investors dumped their Thai stocks. As they exited, foreigners converted their baht into dollars and took them home. The baht crumbled some more. More and more Thai companies looked like they would never be able to repay their debts. Both Thais and foreigners kept selling.

    Thai companies cut back and sacked workers. Unemployment skyrocketed; workers had less to spend — and those who still had money to spend held onto it from fear of uncertainty. The Thai economy tanked…and the outlook for many large Thai companies, even those with no significant dollar debts, began to look more and more precarious.

    As the baht fell, the Thai economy imploded — and the baht fell some more. A change in market prices had caused a change in market prices.

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