Daniel Bakalarz

Investors should always keep in mind that the most important metric is not the returnsachieved but the returns weighed against the risks incurred. Ultimately, nothing should be moreimportant to investors than the ability to sleep soundly at night.

confirmation bias is often the difference between sounding smart and being right. And sometimes something much, much worse.

one concept that  is close to immutable for an investor is that the present value of future free cash flow determines the value  of a financial asset. This is true for stocks, bonds, and real estate. Valuation is challenging for equity  investors because each driver of value—cash flows, timing, and risk—are based on expectations whereas  two of the... See more

“For the most important inquiry, however, there is a method. Let the young soul survey its own life with a view of the following question: “What have you truly loved thus far? What has ever uplifted your soul, what has dominated and delighted it at the same time?” Assemble these revered objects in a row before you and perhaps they will reveal a law... See more

8. Know the difference between information and influence.

Companies create value when their investments earn areturn in excess of the opportunity cost of capital. Investors add value  when their portfolios generate a return higher than an appropriate  market benchmark. Companies continually invest in  assets in order to create value in the business, while investors buy a stock at a point in time in... See more

Making money in markets requires having a point of view that is different than what the current pricesuggests. Michael Steinhardt called this a “variant perception.”13 Most investors fail to distinguish betweenfundamentals and expectations. When fundamentals are good they want to buy and when they are poorthey want to sell. But great investors... See more

these investors are, mentally, always buying thebusiness, not buying the stock.