Re: Investing-Lessons From Bernard Baruch.

Was going through some notes I’ve taken over the years from reading various classics and thought I would share some nuggets here.

This thread focuses on Bernard Baruch (1870-1965), an extraordinarily successful speculator who was a contemporary of the legendary Jesse Livermore.

Analyzing Losses: 1) Have new conditions arisen to require change? 2) Have I lost sight of the main thesis and getting lost in distractions? 3) What have I learned to avoid making the same mistakes?

Common Amateur Mistakes: 1) Not knowing enough about fundamentals, 2) Trading beyond one’s resources, 3) Following someone else’s tip without doing the work, 4) Making decisions based on FOMO/jealousy.

3 Ingredients for Successful Speculation: 1) Get the facts, 2) Form a judgment on what the facts portend, 3) Act in time before it is too late.

“Making money is easier than keeping it.”

Don’t rely too much on following insiders, which can sometimes lead to “believing your own bullshit” (my editorializing). It is best to rely on your own “cold, detached judgment of economic facts, free from tips and wishful thinking.”

Be wary of stocks too dependent on a cult of personality — hmmm, does anything come to mind?

In a panic, it is easy to get swept up in the emotional tide — unless you already have a gameplan.

“Be patient when you’re right and be quick to turn if you’re wrong.”

What turns “ordinary betting” into a “reckless gamble”? 1) Desperate moves to come back from heavy losses, 2) Letting winnings go to one’s head.

When money comes too easily/too early for someone, money no longer has value and can be lost just as easily/quickly.

Manipulations can have limited and temporary effects on the market; in the end, only economic facts matter.

These notes are from my reading of _Baruch: My Own Story_, an autobiography Baruch wrote in 1957. They represent my personal distillation of what I deem

important, as I have made many of these mistakes myself throughout the years. Hope they can benefit you as well.