Paul Singer's Elliott Management Discloses Five Major Investing Lessons

[dealmaker]

Can someone with keener insights explain how a wide and deep education is essential to investing in financial markets? Wide and deep education is rather vague. It can mean learning everything under the sun. What are some important topics to know other than capital structures, corporate business strategies and industry dynamics?

PS Elliott Management had also bought Chrysler during the credit crisis and politicians would not let it cut the dealer count and thus was forced to sell to FIAT.

 

[SteveM]

Just my opinion, but I think funds like Singer's are mostly vulture in nature, and overall they are bad for the American/Global economy. (Breaking things that working just fine in order to make billions for themselves at the expense of the middle class wages/jobs/higher overall costs for consumers.)

 

[ironchef]

Just my opinion, but I think funds like Singer's are mostly vulture in nature, and overall they are bad for the American/Global economy. (Breaking things that working just fine in order to make billions for themselves at the expense of the middle class wages/jobs/higher overall costs for consumers.)

Elliott’s five lessons:

• No security price is too high (or low) that it cannot go higher (or lower)
• Turns in markets are impossible to time
• Big changes in market prices frequently occur far in advance of when the reasons for the changes become apparent, and by then it is too late to incorporate the new information into one’s trading at the old prices
• One of the most important reasons to avoid significant losses is to avoid the painful and sometimes terminal effect of severe adversity on the quality of money managers’ decision-making processes
• A wide and deep education about the world, not just about capital structures, corporate business strategies and industry dynamics, is essential to the long-term success of money managers.

These are very good general investing/trading lessons that we all can learn from and has no relation to his trading/investing style or method. Thank you OP for bringing it to our attention.