Tuesday, January 21, 2014

Bob Janjuah on the 4 tricks on investing

My futile rantings are not going to change the game, and indeed many of you may already be bored stiff with my worrisome ways, but hopefully some of you will take heed and not get too sucked in. 

The trick is 
(a) to remember this, i.e, to be fully aware of the gap between reality and delusion, 

(b) to retain a rock solid appreciation of the differences between 'investing' vs. 'trading', between 'debt' and 'liquidity', and between actual vs. assumed liquidity, 

(c) as investors to ensure that your 'balance sheet' is not unduly damaged in the pursuit of yield - be sure you understand that taking a whole heap more risk now for a bit more carry is likely to be a strategy that ends very badly once the current bubble bursts, and 

(d) to stay on the right side of these 'pairs' - simply put, favour QUALITY.