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The Art of Execution

Book Description

Over seven years, 45 of the world's top investors were given between $25 and $150m to invest by fund manager Lee Freeman-Shor. His instructions were simple. There was only one rule. They could only invest in their ten best ideas to make money. It seemed like a foolproof plan to make a lot of money. What could possibly go wrong? These were some of the greatest minds at work in the markets today - from top European hedge fund managers to Wall Street legends. But most of the investors' great ideas actually lost money. Shockingly, a toss of a coin would have been a better method of choosing whether or not to invest in a stock. Nevertheless, despite being wrong most of the time, many of these investors still ended up making a lot of money. How could they be wrong most of the time and still be profitable? The answer lay in their hidden habits of execution, which until now have only been guessed at from the outside world. This book lays bare those secret habits for the first time, explaining them with real-life data, case studies and stories taken from Freeman-Shor's unique position of managing these investors on a day-to-day basis. A riveting read for investors of every level, this book shows you exactly what to do and what not to do when your big idea is losing or winning - and demonstrates conclusively why the most important thing about investing is always the art of execution.

Table of Contents

  1. Contents
  2. About the Author
  3. Introduction
    1. The ‘wow’ moment
      1. When the best fail
      2. How this book is structured
  4. Part I : I’m Losing – What Should I Do?
    1. 1. The Rabbits: Caught in the Capital Impairment
      1. Jumping in
      2. What the Rabbits did wrong
      3. What the Rabbits could have done differently
      4. It’s all about capital impairment
      5. The lessons of poker
    2. 2. The Assassins: The Art of Killing Losses
      1. Never lose money
      2. The code of the Assassins
      3. Don’t sell too soon
      4. Be careful on your next investment
      5. An elusive cadre
    3. 3. The Hunters: Pursuing Losing Shares
      1. Success starts from failure
      2. Snatching victory
      3. Hunting for the compounding effect
      4. The advantages of a Hunter
      5. A rare investing style
      6. Conclusion to Part I
  5. Part II: I’m Winning – What Should I Do?
    1. 4. The Raiders: Snatching at Treasure
      1. Investing on the edge of ruin
      2. Why do investors sell too soon?
      3. Why you shouldn’t sell early
      4. Is it ever right to sell a winner?
      5. Too professional
      6. Why was one Raider such a successful hedge fund manager?
      7. Resisting the raid
    2. 5. The Connoisseurs: Enjoying Every Last Drop
      1. How to ride winners
      2. Clues from the Forbes rich list
      3. Why many fund managers are doomed to fail
      4. Academic support for ‘best ideas’ investing
      5. Dangers of being a Connoisseur
      6. Are you ready to be a Connoisseur?
  6. Conclusion: The Habits of Success
    1. A dinner to remember
  7. The Winner’s Checklist: The five winning habits of investment titans
    1. 1. Best ideas only
      1. 2. Position size matters
      2. 3. Be greedy when winning
      3. 4. Materially adapt when you are losing
      4. 5. Only invest in liquid stocks
  8. The Loser’s Checklist: The five losing habits of most investors
    1. 1. Invest in lots of ideas
      1. 2. Invest a small amount in each idea
      2. 3. Take small profits
      3. 4. Stay in an investment idea and refuse to adapt when losing
      4. 5. Do not consider liquidity
    2. Publishing details