This is the greatest investor ever. Stanley Druckenmiller has never...
Oguz Erkan@oguzerkan
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Nov 15, 2024
~2 min read
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This is the greatest investor ever.
Stanley Druckenmiller has never had a down year.
His fund returned 30% annually for 30 years.
Here is his updated philosophy:
Stanley Druckenmiller has never had a down year.
His fund returned 30% annually for 30 years.
Here is his updated philosophy:
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1. "Never invest in today, always invest in future."
If you invest looking at the market today, you'll always lag the market.
"You have to visualise the situation 18 months from now, and whatever that is, that's where the price will be, not where it is today".
If you invest looking at the market today, you'll always lag the market.
"You have to visualise the situation 18 months from now, and whatever that is, that's where the price will be, not where it is today".
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2. "Keep your eye on liquidity."
Druckenmiller believes that what moves the market is the liquidity, not earnings.
"Earnings don’t move the market; it’s the Federal Reserve. It’s liquidity that moves markets."
Druckenmiller believes that what moves the market is the liquidity, not earnings.
"Earnings don’t move the market; it’s the Federal Reserve. It’s liquidity that moves markets."
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3. "Don't be afraid of concentration."
Risk doesn't comes from the number of stocks you own, it comes from not knowing what you are doing.
"I like putting all my eggs in one basket and then watching the basket very carefully."
Risk doesn't comes from the number of stocks you own, it comes from not knowing what you are doing.
"I like putting all my eggs in one basket and then watching the basket very carefully."
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4. "Learn different asset classes."
1980s and 1990s were shaped by macroeconomic chaos.
Today is shaped by internet and tomorrow will be shaped by something else.
Whatever that thing is, could be AI or crypto, learn it.
1980s and 1990s were shaped by macroeconomic chaos.
Today is shaped by internet and tomorrow will be shaped by something else.
Whatever that thing is, could be AI or crypto, learn it.
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5. "It's not whether you are right or wrong, it's how much you make when you are right."
Don't pursue incremental returns.
Always bet on asymmetric plays where you will lose 100% if you are wrong but will make 1,000% if you are right.
Don't pursue incremental returns.
Always bet on asymmetric plays where you will lose 100% if you are wrong but will make 1,000% if you are right.
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6. "Good investing requires stomach, not IQ."
As other legendary investors like Warren Buffett and Peter Lynch, Druckenmiller also believes that the most important thing in investing is emotional control.
As other legendary investors like Warren Buffett and Peter Lynch, Druckenmiller also believes that the most important thing in investing is emotional control.
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7. "When you have conviction, bet big."
When you have a conviction, betting small is nearly as big of a mistake as not betting at all.
Druckenmiller also learnt this from Soros, the Goat of position sizing.
When you have a conviction, betting small is nearly as big of a mistake as not betting at all.
Druckenmiller also learnt this from Soros, the Goat of position sizing.
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8. "Always remain flexible."
Have opinions but loosely hold them. Change your mind when the conditions change.
"When you're betting the ranch and the circumstances change, you have to change, and that's how I've always managed money."
Have opinions but loosely hold them. Change your mind when the conditions change.
"When you're betting the ranch and the circumstances change, you have to change, and that's how I've always managed money."
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Stanley Druckenmiller got rich by investing.
This is how he became free. You can do the same.
Join 4,000+ readers to become a better investor.
You will also get a free e-book when you join 👇
capitalist-letters.com
This is how he became free. You can do the same.
Join 4,000+ readers to become a better investor.
You will also get a free e-book when you join 👇
capitalist-letters.com