This translation has been automatically generated and has not been verified for accuracy.‘Nick’ is the vague pseudonym used by a U.S. portfolio manager who avoids using his real name because it would require his firm’s approval for articles he writes online. The strategy is helpful in that it allows us to discuss two separate online essays by the author with significant insight for investors.
He went on to explain that the core failing of permabears is that they become so entrenched in pessimism that the fact they don’t make money in the market is forgotten. Personally, I can paralyze myself at times by listing and focusing too much on potential market risks. This is in large part a function of temperament but also academic research that conclusively shows that the more transactions an investor does, the lower their longer term returns become. With that in mind, the fewer times I get excited about an investment idea, the better.