Seth A. Klarman remarks at MIT

"A very significant part of my philosophy has to do with managing your psychology. Markets are about the psychology of others. When are they panicking? When are they greedy? But you have those same flaws or those same potential flaws, and managing your portfolio in a way that doesn't leave you where you're panicking or overexposed to greed. If you ... See more

To respond to market cycles and understand their message, one realization is more important than all others: the risk in investing doesn’t come primarily from the economy, the companies, the securities, the stock certificates or the exchange buildings. It comes from the behavior of the market participants. So do most of the opportunities for except

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"I think it's good to step back from the moment-by-moment noise. Investors sometimes get caught up in the noise, but it's really important to step back….so Daniel Kahneman, my favourite author from Thinking Fast and Slow, wrote a book called Noise and he laid out…an example of somebody taking target practice. Bias is if every shot is up and to the ... See more