A Man for All Markets

it is difficult to judge how relatively bad these were, compared with the incessant violations that have always been, and continue to be, endemic in business and finance, because only a few of the many violators are caught, and when they are prosecuted it may be for only a tiny fraction of their offenses. This contrasts with the case of Drexel, whe

I learned from this that even though I was right in my economic analysis I hadn’t properly evaluated the risk of too much leverage. For a few thousand dollars I learned from this to make proper risk management a major theme of my life for more than fifty years thereafter.

Forty-six years later, when I stopped by our high school reunion for a couple of hours, the “ins” seemed the same as they had so long ago, only older and mellower. High school had been the apex of their lives. Many had married one another and lived locally ever since, whereas for me high school was a launching pad for life’s great adventure.

This plan, of betting only at a level at which I was emotionally comfortable and not advancing until I was ready, enabled me to play my system with a calm and disciplined accuracy. This lesson from the blackjack tables would prove invaluable throughout my investment lifetime as the stakes grew ever larger.

Warren’s house in Emerald Bay became newsworthy later on during Arnold (“The Terminator”) Schwarzenegger’s successful 2003 campaign to become governor of California. Initially, Buffett was a supporter and an economic adviser to Arnold. One campaign issue was how to cut California’s budget deficit. The problem was caused largely by the anti-tax meas

A young reporter for the Post named Tom Wolfe followed up after my talk with an interview. The Post ran his story, “You Can So Beat the Gambling House at Blackjack, Math Expert Insists.” He was curious rather than skeptical, sympathetic but probing. Wolfe later became one of America’s most famous authors.

Taxable investors need to review their holdings on a case-by-case basis. For instance, in 2015, with a cost basis of about $1,000 a share, a market price of $225,000 a share, and a combined federal and state tax rate of, say, 30 percent, I would net about $157,800 per share after a sale of my Berkshire Hathaway Class A stock. An index fund purchase

I finally decided to go to Nevada, partly to silence that irritating jeer often leveled at academics, “Well, if you’re so smart, why aren’t you rich?” As a matter of personal pride and honor I felt that I owed my readers proof that the theory really worked, despite scoffs from casinos that my claims were ridiculous. The clincher was the casino spok

This is reminiscent of the so-called secretary or marriage problem in mathematics. Assume that you will interview a series of people, from which you will choose one. Further, you must consider them one at a time, and having once rejected someone, you cannot reconsider. The optimal strategy is to wait until you have seen about 37 percent of the pros