We are students and practitioners of Behavioral Finance. The markets have made us humble. So, we avoid the use of excessive leverage, we diversify, we minimize trading. We have learnt to be patient. We understand and profit from reversion to the mean.
We distance ourselves from the daily “noise” of the market and the ticker. It is all about maintaining a balance between what is “”news” and “actionable””, from what is a constant stream of extraneous static which does not impact our investment thesis. We teach ourselves to not be fooled by randomness, to look for empirical data to support our thesis.
We are extremely open-minded. We often invest in turnaround situations. These are often the most rewarding.
We have all experienced panicky markets and the agony of holding stocks at these times. Fund managers have been known to experience physical pain and the risk of selling at the bottom becomes very real. We have learned to be cognizant of these risks and not let pain influence our investment choices. Maintaining a high degree of discipline at these times has often provided the greatest opportunities.