Save the Chips for Later Play, from Pitt T. Maner III
Vic,
Just ran across the new book by Mr. Spitznagel tonight (The Dao of Capital: Austrian Investing in a Distorted World) and saw your recommendation on Amazon. Spitznagel uses some of the forest fire ecosystem ideas that the Dailyspec has discussed.
Patience and discipline appear to be points emphasized by the author.
I thought this was a good quote of the day:
Yet, in both poker games and financial markets distorted by the manipulation of antes and interest rates, respectively, this makes sense. Current valuations indicate that Mr. Bernanke's continuing monetary policy is fooling investors into taking enormous risk for no expected return, or close to it.
Perhaps investors should heed the poker player in similar circumstances, who would instead choose a guaranteed zero return, saving his chips for another day, for another chance to play the holy game — but with fairer rules where the value of the hand truly justifies the risk and reward."