This is Stan Druckenmiller.
He is one of the best Hedgefund Managers of all time!
He achieved a 30% annual return for over 30 years.
Here are his 7 Investment Principles:
He is one of the best Hedgefund Managers of all time!
He achieved a 30% annual return for over 30 years.
Here are his 7 Investment Principles:
1. Never Invest in the Present
Druckenmiller doesn’t care about the current earnings of a company or its history.
He envisions what the earnings will be in 18 to 24 months. That’s where the price will be.
He analyzes the macro environment and finds the beneficiaries.
Druckenmiller doesn’t care about the current earnings of a company or its history.
He envisions what the earnings will be in 18 to 24 months. That’s where the price will be.
He analyzes the macro environment and finds the beneficiaries.
2. Top-Down-Method
In contrast to many other successful investors, Druckenmiller is a top-down investor.
He analyzes the macro environment and finds the beneficiaries.
When he finds imbalances between his and the market’s views, he bets big.
In contrast to many other successful investors, Druckenmiller is a top-down investor.
He analyzes the macro environment and finds the beneficiaries.
When he finds imbalances between his and the market’s views, he bets big.
3. Asymmetric Bets
The principle of asymmetric bets is crucial and connects every investor, despite their different strategies.
You only want invest in unfair bets.
Bets where you win a lot when you’re right and lose little when you’re wrong.
The principle of asymmetric bets is crucial and connects every investor, despite their different strategies.
You only want invest in unfair bets.
Bets where you win a lot when you’re right and lose little when you’re wrong.
4. Big Bets
Just like many other investors, he’s an advocate for concentrated bets.
This makes sense since betting on macroeconomics is very hard.
There are very few instances in which you’ll have a different view than the crowd and enough confidence to bet big.
Just like many other investors, he’s an advocate for concentrated bets.
This makes sense since betting on macroeconomics is very hard.
There are very few instances in which you’ll have a different view than the crowd and enough confidence to bet big.
5. Leverage
Druckenmiller isn’t afraid of leverage.
When he bets, he’s very confident, and wants to supersize his gains with leverage.
He learned this from his mentor George Soros and applied it in their popular bet against the Bank of England.
Druckenmiller isn’t afraid of leverage.
When he bets, he’s very confident, and wants to supersize his gains with leverage.
He learned this from his mentor George Soros and applied it in their popular bet against the Bank of England.
6. Multiple Asset Classes
As mentioned, finding opportunities in macro investing can be difficult.
Thus, you need to be very flexible with where you invest, and you need to look across asset classes.
Druckenmiller often holds multiple asset classes simultaneously.
As mentioned, finding opportunities in macro investing can be difficult.
Thus, you need to be very flexible with where you invest, and you need to look across asset classes.
Druckenmiller often holds multiple asset classes simultaneously.
7. Mental Flexibility
Besides asset class flexibility, you also need mental flexibility.
You need to be able to change your opinion quickly when the facts change.
Don’t hold on to a wrong thesis. As soon as you realize the thesis is false, act on the new information.
Besides asset class flexibility, you also need mental flexibility.
You need to be able to change your opinion quickly when the facts change.
Don’t hold on to a wrong thesis. As soon as you realize the thesis is false, act on the new information.
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Follow me @MnkeDaniel to learn more about Investing!
Have a great day!
Follow me @MnkeDaniel to learn more about Investing!
Have a great day!
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