In his recent interview on Meb Faber Podcast, Mark Yusko explains why every trade makes you richer or wiser, but never both. Here’s an excerpt from the interview:
Yusko: I can’t take credit, I stole that, the famous Picasso line – good artists borrow, great artists steal. I stole that from Bill Duhamel. Bill’s a good friend and a hedge fund manager, interesting background too, his family was a big cable television family.
He decided not to go in the family business, became a manager worked for Farallon and then spun out into a firm called Route One and he has that plastered on the cube as you walk through the front door of his office in San Francisco, and I just love that quote because it’s absolutely true.
When you make an investment and it works you learn nothing. You don’t analyze it. You don’t think about was that a good decision, a bad decision. Did I get lucky? Was there skill? You just spend no time.
When it goes against you, you actually think about it. You’re like oh geez did I make a good decision with a bad outcome? Did I make a bad decision with a bad outcome, which is the worst possible thing. Was there other forces that I didn’t anticipate?
Definitely in this business you get richer or wiser, never both.
You can listen to the entire discussion here:
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