Sublime

M Y I N C L I N A T 1 0 N z' 0 buy out-of-favor stocks comes naturally, but by itself doesn't account for beating the market. Success also required lots of perseverance. You have to be willing to hang in when prevailing wisdom says you're wrong. That's not instinctive; more often than not, it goes against instinct.

excellent proxies for the quantitative and qualitative judgments that investors make

Be careful of selling on bad news or rumors; they may be of temporary influence. Rumors are sometimes started to scare individual investors—the little fish—out of their holdings.

The lesson here is not to be more like Ronald and less like Richard—though that’s not bad advice. The fascinating thing about these stories is how unique they are to finance. In what other industry does someone with no college degree, no training, no background, no formal experience, and no connections massively outperform someone with the best edu

1. If you cut all your losses at 7% or 8%, take a few profits when you’re up 20%, 25%, or 30%. Compounding three gains like this could give you an overall gain of 100% or more. However, don’t sell and take a 25% or 30% gain in any market leader with institutional support that’s run up 20% in only one, two, or three weeks from the pivot buy point on a

Tony also has the ability to find the best

You can’t become a big winner in the stock market until you learn to be a good seller as well as a good buyer. Readers who followed these historically proven sell rules during 2000 nailed down most of the substantial gains they made in 1998 and 1999. A few serious students made 500% or more during that fast-moving period. Again in 2008, an even gre

Buffett’s genius was largely a genius of character—of patience, discipline, and rationality.

To be taken seriously as M&A specialists, we had to master this dynamic new area of finance. But the even bigger opportunity, Pete and I thought, would be to become investors ourselves.