Keynes
Keynes
https://www.maynardkeynes.org/keynes-the-investor.html
1) Keynes’s view was that he would rather be a “speculator” in an asset that had a daily price quotation and was liquid enough to be bought and sold than an “investor” in something whose price was largely unknown.
2) investing in stocks he believed would prosper in the longer term and then sticking doggedly with his selections despite shorter-term problems.
3) A careful selection of a few investments (or a few types of investment) having regard to their cheapness in relation to their probable actual and potential intrinsic value over a period of years ahead and in relation to alternative investments at the time;
4) A steadfast holding of these in fairly large units through thick and thin, perhaps for several years, until either they have fulfilled their promise or it is evident that they were purchased on a mistake;
5) A balanced investment position, i.e., a variety of risks in spite of individual holdings being large, and if possible, opposed risks.
6) “Investing is an activity of forecasting the yield over the life of the asset; speculation is the activity of forecasting the psychology of the market.”
7) Losses incurred throughout the duration of 2 world wars, led Keynes to question his beliefs in market cycles and economic data and assumptions to make investment decisions. This led him to his development in his thesis in animal spirits and speculation. Strangely, his investment decisions do not correspond with his academic work.
https://www.maynardkeynes.org/keynes-the-investor.html
1) Keynes’s view was that he would rather be a “speculator” in an asset that had a daily price quotation and was liquid enough to be bought and sold than an “investor” in something whose price was largely unknown.
2) investing in stocks he believed would prosper in the longer term and then sticking doggedly with his selections despite shorter-term problems.
3) A careful selection of a few investments (or a few types of investment) having regard to their cheapness in relation to their probable actual and potential intrinsic value over a period of years ahead and in relation to alternative investments at the time;
4) A steadfast holding of these in fairly large units through thick and thin, perhaps for several years, until either they have fulfilled their promise or it is evident that they were purchased on a mistake;
5) A balanced investment position, i.e., a variety of risks in spite of individual holdings being large, and if possible, opposed risks.
6) “Investing is an activity of forecasting the yield over the life of the asset; speculation is the activity of forecasting the psychology of the market.”
7) Losses incurred throughout the duration of 2 world wars, led Keynes to question his beliefs in market cycles and economic data and assumptions to make investment decisions. This led him to his development in his thesis in animal spirits and speculation. Strangely, his investment decisions do not correspond with his academic work.
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