March 25, 2014

Doug Kass on Jim Valvano the Basketball coach

You gotta believe in yourself. You gotta know yourself, too. Wall Street is not a great place to "find yourself." (There is a reason why there is a cemetery on one side and a church on the other side of the New York Stock Exchange building.) Psychology can be important; it often trumps cause-and-effect relationships that have been in place historically. Above all, have confidence in your own analysis (as long as it is thorough), even if your view is at variance with the consensus.

And of course, Coach Valvano's most recognized quote: "Don't give up, don't ever give up."

Learn to survive under adverse market conditions by avoiding large losses, and learn how to prosper during good times. Generally speaking, by maintaining discipline and stopping out your losses, you can live another day in your investing life. It is not batting averages or on-base percentages that count in this game; it is how you control the risk in your portfolio. As an example, short positions can be hedged by owning cheap out-of-the-money calls, and long positions can be hedged by owning cheap out-of-the-money puts -- especially in a low-volatility setting.


Additional Quotes-

"No matter what business you're in, you can't run in place, or someone will pass you by. It doesn't matter how many games you've won. ... How do you go from where you are to where you want to be? I think you have to have an enthusiasm for life. You have to have a dream, a goal, and you have to be willing to work for it." -- Jim Valvano

"Be a dreamer. If you don't know how to dream, you're dead."

"My father gave me the greatest gift anyone could give another person; he believed in me."  -- Jim Valvano




Article originally published on http://www.thestreet.com/story/12539433/1/tips-from-coach-valvano-nikkei-is-a-dud-best-of-kass.html

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