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Here are some threads he had back in the day talking about some of this stuff http://www.elitetrader.com/et/index.php?threads/buffett-style-investing-a-discussion.134315/ http://www.elitetrader.com/et/index.php?threads/passive-long-term-investment-who-wants-to-discuss-it.125840/...

If I seem to be rambling about different unrelated things, its because I am. I just like to think out loud about different ideas on wealth compounding, investing, etc. Back in the day I would go back and forth with Ghost of Cutten on this type of stuff but I think he is gone from the earth or...

This is not to say that borrowing 70%+ of the value of the home is good, I'm referring to buying with 100% cash or maybe 10-30% debt. Otherwise the interest cost offsets the rent saving

Even though I mentioned the 100% stock plan as a decent way for some young people to get rich, I'm of the opinion that real estate is still the best way for the average person to grow their wealth. As far as I know, thats most people in the US become millionaires I really think people like...

The thing is, even though I defend him, I still see some instances where he deserves criticism. But yet, I never hear about that criticism, usually its empty stuff with little or no relevance. For instance, I believe his HLF short was a bad bet. Not because of the short itself but because if it...

Of course, most people don't have that kind of risk tolerance. They wouldn't be able to survive the drawdowns without panicking. But some people do, a good number of those people are Buffett followers. Like Bill Ackman. And that's why he is not a gambler who is about to go broke Its that he and...

When a good level of financial freedom is achieved, the person could then move to a more all-wheater type allocation where there are more protections against tail events and just compound their money at lower rates, enjoy their extra free time, etc

Maybe tax wise that plan would have to be tweaked, I'm not sure what people can do with those retirement accounts and what they can't but I definetly can see the wisdom of being young and loading up 100% in stocks in order to become financially free. While that involves risks (like a...

But this idea of leveraging in a broad diversified stock portfolio is a tempting one for someone who is young and wants to get rich. I can see it making sense for a lot of people. In the US, that is easy to do because of stock index futures If you are 22, can save $20K a year, you can probably...

The authors find that is better to own 30-40 stocks instead of 10 because the additional diversification allows you to lever up on the broader basket while keeping the same overall standard deviation in both portfolios. But the reason for that is because they assume every stock has the same...

Here is another finding The vast majority of the reduction in volatility of a stock portfolio is obtained from the jump from 1 (100% size per stock position) stock to 6 (16% size per stock position) The authors of the paper note that while a lot of the bang for the back is obtained at the...

If there was a perfect computer that would take into account those factors and tell you the perfect amount fo bet, I'm sure the answer would be 20%+ for some positions quite often (not for every position, obviously). the reason I know that is because the Kelly/Optimal F a lot of the time is far...

The reason I posted that wasn't because I was randomly looking for rationalizations. My daytrading is a more significant part of my income, investing/macro is mostly a fun thing I do on the side. I was actually thinking "what is the optimal way to manage a concentrated stock portfolio if you...

Given that you usually criticize people on the forum for making faulty replies, I got to say, I expected more of you

Well, I'm open to a logic basic discussion with other people then

I'm presenting arguments based on math and logic. You don't seem to be doing the same

Ackman acknowledged the VRX position sizing error (that probably wasn't all that big if you are trying to maximize wealth creation) by my count, twice, what are the odds that he will go on to make that mistake again? The answer is very low

People don't seem to understand that because they don't seem to get that he is a Buffett follower. Buffett recommends that people put 100% of their money in stocks (and he got rich doing it himself), thats because he is willing to tolerate big drawdowns in order to maximize wealth accumulation...

So while Ackman deserves critisicm for oversizing his VRX position, people take that way too far. It wasn't that wrong mathematically, its more that it was too high compared to what most people can tolerate in terms of drawdowns especially (and here was the problem) that a concentrated portfolio...

Is Bill Ackman a gambler with no clue of risk management? Well to answer that one has to do some analysis on position sizing. When VRX was at $250, Ackman seemed to be valuing the upside at $100 or more. The downside was $250, in reality, its less than that because sometimes you will liquidate...