Stanley Freeman Druckenmiller is an American investor, hedge fund manager, and philanthropist. He is the former chairman and president of Duquesne Capital, which he founded in 1981. At the time of closing, Duquesne Capital had over $12 billion in assets.
Unlike other investors, Druckenmiller has a unique investing style. He does not adopt traditional investing strategies like most others do. What’s more impressive is that throughout his career, he’s never had a single down year.
Here're some of Druckenmiller's secrets to outperformance.
Invest in the future, not the present.
“Visualise the situation 18 months from now, and whatever that is, that’s where the price will be, not where it is today.” “Never, ever invest in the present. It doesn’t matter what a company is earning, or what they have earned.”
Past performance is not a guarantee of future returns.
With the pace of technological innovation, change is the only constant. The future is likely to be drastically different from the present. Only those who are prepared will benefit.
Diversification is overrated.
“Put all your eggs in one basket, and watch that basket very closely. If you really see it, put all your eggs in one basket and watch the basket very carefully.” “Diversification and all the stuff they’re teaching at business school today is probably the most misguided concept everywhere.”
Concentration is not a problem, provided you know what you’re doing. If you don’t, then it’s best to diversify.
EQ matters more than IQ in investing.
“Good investors are successful not because of their IQ, but because they have an investing discipline” “What is more disciplined than a machine? A well-researched machine can make many average investors redundant, leaving behind only the really good human investors with exceptional intuition and skill.”
Investing is 20% skill, 80% psychology. Mind over matter. Strong minded people will likely have more holding power than their weak minded counterparts.
Risk vs Reward
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong”.
The key to successful investing is making more when you’re right and losing less when you’re wrong.
Don't Hedge
“I don’t really like hedging. To me, if something needs to be hedged, you shouldn’t have a position in it.”
That’s why the saying goes: “Diversification is a hedge against ignorance.”
If you find yourself hedging a position, it’s likely that you don’t have the confidence or conviction in the company. When the stock price falls, you’re likely to panic sell. In which case, you probably should not even own that stock.
Join Our BOS Community
In the Buffett Online School, we believe in learning the right investing mindset and system, so we can start cultivating emotional detachment and grow our wealth safely and substantially in the long run.
By joining the Buffett Online School community, you and your friends will have access to a wealth of educational resources, expert insights, and a vibrant network of learners. This will help you and your loved ones further enhance your investment skills and emotional stability, thereby improving your portfolio returns.
Our next 2-day BOS MBA Value Investing Online Bootcamp is happening soon! We will teach you how to use Warren Buffett's proven investing method to maximize your portfolio.
Even if you have attended before, you will still gain additional new insights and exclusive community support specifically for this upcoming bootcamp!
And the best part is, it is FREE!
Additionally, our BOS community offers exclusive rewards and recognition for each person you invite, making your journey with us even more rewarding. You will take away resources like:
- Gone Fishing With Buffett ebook to understand Buffett’s investing insights (worth $17)
- Financial Freedom Calculator to plan out your own retirement portfolio (worth $47)
- Warren Buffett’s Portfolio Watchlist to peek into his recent trades (worth $97)
- ETF online course to learn to generate consistent 10% every year (worth $297)
Remember, you have the choice to cultivate the right investing mindset and unlock your potential to build wealth through intelligent investing. Together, we can create a network of educated investors who make informed decisions and contribute to their financial well-being! Join the BOS Community Today!
In the meantime, feel free to check out some of our blog posts to continue your learning. You can also join our BOS Telegram channel for more investing insights.
תגובות