Being Right or Making Money, 3rd Edition

Preface

Why write a new edition of Being Right or Making Money?

The short answer is that I always feel that I can improve my work. However, though I have updated the philosophy chapter from the previous editions with some new facts and quotes, the only major change is the evolution of my belief that the most successful money managers are risk averse. While it might seem that many of the big winners since 2000 have been risk takers, I still contend that those who consistently succeeded were successful risk managers.

This book is mostly about making money, but that is not my only focus. I try to understand the world and educate myself about the issues affecting it. I have thought about a quote from Eleanor Roosevelt many, many times. She said, “Great minds discuss ideas, average minds discuss events, small minds discuss people.” In that spirit, I spend much of my time researching and learning about ideas. Among my current passions: new research data, techniques and indicators, energy fracking, health care and biotech, demographics, the Middle East and other areas of geopolitical conflict, the implications of fascinating new technology in cars and electronics, secular trends, the European Union, debt problems, and domestic politics. So many factors can impact the economy and investments.

I'm fortunate that I no longer need to work to make a living, but I still find it exhilarating to be paid to continue my education and stimulate my mind. I am so grateful. This is a fascinating ...