Here’s an excerpt:
It’s important to understand who your opponents are on the field of battle.
Sports and war metaphors abound, because they are consistent with what you are
going up against. Yes, you are up against Mr. Market, but your rivals are also
other people buying and selling stocks. They, too, are looking to produce
Ellis, who oversees the $10 billion endowment fund at Yale University, once
"Watch a pro football game, and it’s obvious the guys on the field
are far faster, stronger and more willing to bear and inflict pain than you are.
Surely you would say, ‘I don’t want to play against those guys!’
Well, 90% of stock market volume is done by institutions, and half of that is
done by the world’s 50 largest investment firms, deeply committed, vastly well
prepared — the smartest sons of bitches in the world working their tails off
all day long. You know what? I don’t want to play against those guys
That’s a brutal and, in my opinion, absolutely spot-on observation.
Prior columns can be found here.