I wrote about this subject nearly two years ago from my own personal perspective, but now I want to expand on the original blog and share with you the perspective of a well-known international portfolio manager on the same topic. Here’s what I wrote two years ago:
I was asked not to name names, but let me set up the story.
I was out of town, dining alone in one of those intimate restaurants in the high rent district where they cram tables so tightly together that the pretentious maître d’ shows you to the table but offers no helpful advice whatsoever about how to crawl into your seat. You may consider crawling under the table as the preferred path since squeezing your derriere into the six-inch gap between the tables and into the faces of the neighboring patrons hardly looks like a viable option.
Nevertheless, once wedged into my seat, I ordered a drink and began to flip through a few stock charts on my phone. The couple seated next to me couldn’t help but notice since I was virtually sitting in their laps, and despite my rudeness with my phone, they soon invited me to join them.
As it turned out, the husband is a well-known mutual fund manager and was intrigued by my chart reading. A robust evening ensued and we covered a lot of ground thanks to his very patient wife, but we finally settled on discussing in detail why he believes that happier traders and investors generally make more money.
These are our observations (more his and hers than mine) about how happiness facilitates profitable investing, listed in no particular order. I will add one caveat – our happy discussion was well lubricated by two sensational Napa Valley reds. For the sake of the story, I’ll just refer to this couple as Ted and Alice.
Continue reading "Secret Sauce: The Other 50% of Investing - Part II" »