The Schwar Report - Issue 14
Monday 25th November 2024
Welcome to this weeks edition of The Schwar Report, your weekly primer featuring three interesting reads, two thought-provoking quotes, and one question to ask yourself to start your week on the right foot.
Three Reads to Inspire Your Week
"The Alchemy of Finance" by George Soros
Why read it: This book offers a deep dive into George Soros's theory of reflexivity, which challenges traditional market assumptions by asserting that market prices are influenced by the perceptions and biases of participants. Soros's approach provides valuable lessons on understanding market dynamics and exploiting opportunities created by self-reinforcing trends and market inefficiencies.
"Deconstructing Efficient Markets and Constructing Optimal Investment Portfolios" by
Why read it: This article challenges the Efficient Market Hypothesis and explores the inefficiencies in financial markets. It provides insights into how institutional constraints and human psychology create opportunities for astute investors to outperform by developing optimal investment strategies that capitalise on market inefficiencies.
"Warren Buffett: 'I am a better investor because I am a businessman and a better businessman because I am an investor'" by
Why read it: This article looks into Warren Buffett's investment philosophy and business principles, based on a 1993 Forbes profile. It covers key aspects of Buffett's approach, including his focus on wonderful businesses with great management, openness to new ideas, views on diversification, and the importance of staying within one's circle of competence. The article also offers a glimpse into Buffett's personality and how he remained unchanged despite his financial success.
Two Quotes to Reflect On
"Simplicity is the ultimate sophistication." — Leonardo da Vinci
Reflection: This quote reminds us that clarity and simplicity are often more effective than complexity. In investing, as in life, cutting through noise to focus on what truly matters can lead to better decision-making and outcomes.
"I am a better investor because I am a businessman and a better businessman because I am an investor." — Warren Buffett
Reflection: This quote underscores the symbiotic relationship between business acumen and investment prowess. It highlights how skills in one area can enhance performance in the other, emphasising the importance of developing a well-rounded understanding of both fields.
One Question to Ask Yourself
This week, we're asking you to look at your weaknesses when it comes to investing:
ICYMI
Check out our posts from the last week:
That wraps up this week’s Schwar Report, we hope you enjoyed.
Have a productive week,
The S.C. Team
Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute financial, investment, or other professional advice. While we believe the information to be reliable, we cannot guarantee its accuracy. The opinions expressed are those of the author and do not necessarily reflect the views of Schwar Capital. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. The author may or may not hold positions in the stocks or other financial instruments mentioned. Always do your own research or consult with a qualified financial advisor before making any investment decisions.
Thanks for including my article on Warren Buffett! Much appreciated!
🫡🦉