Tuesday, December 9, 2008

So You Want to Be the Next Buffett?

Here's a great talk on investing that was given at Harvard Business School by Mark Sellers. I highly recommend it.

"Personally, I'm amazed at how little conviction most investors have in the stocks they buy. Instead of putting 20% of their portfolio into a stock, as the Kelly Formula might say to do, they'll put 2% into it. Mathematically...it can be shown that a 2% position is the equivalent of betting on a stock that has only a 51% chance of going up, and a 49% chance of going down. Why would you waste your time even making that bet?"

Sellers MBA Talk
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