Art of War & Investing
Those who know me know that I buy more books than I can finish. I sign up for more online courses than I can complete. I fundamentally believe that if you are not learning new things, you stop doing great and useful things.
Today i thought why not combine ‘Art of War’ with Investing, a book i am greatly influenced by . I Learned about the book called ‘Art of War’ from this movie called “Wall Street” (1987). Art of War is written by Sun Tzu, a Chinese general 2500 Years ago and the learning’s are still very relevant. I am Convinced that if he was a Investor, he would be the best Investor in the world.
Those who know me know that I buy more books than I can finish. I sign up for more online courses than I can complete. I fundamentally believe that if you are not learning new things, you stop doing great and useful things.
Today i thought why not combine ‘Art of War’ with Investing, a book i am greatly influenced by . I Learned about the book called ‘Art of War’ from this movie called “Wall Street” (1987). Art of War is written by Sun Tzu, a Chinese general 2500 Years ago and the learning’s are still very relevant. I am Convinced that if he was a Investor, he would be the best Investor in the world.
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I am Going to Write 3 Quotes from his book and show to how Investing is so Similar to a War, the only difference is that its a Financial War and there is no Bloodshed.
Quote #1 – If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.
I Would say this, know the market and know yourself and in 100 years you will consistently beat the market. 90% of investing wins is because of your Psychology and discipline rather than your IQ, its really important to know yourself. Understand the market is prime and We at stallion have been consistently beating the market, and till the time we are learning the right things, we will beat it. We follow a consistent Strategy of Growth at a Reasonable price and have full conviction in it.
Quote #2 – Every battle is won before it’s ever fought.
If you know your strategy has worked well for last many decades, you know that you will win this time too. In our Blog Good to Great, I had written “Have You ever seen a Dealer at the Casino nervous after loosing 3 consecutive games? The Answer is No, but on the other hand if a Gambler loses 3-4 games consecutively he will get nervous and probably order a whisky. This happens because the casino dealer has a strategy in place and he knows he will win repeating the same thing again and again.”
Quote #3 – The supreme art of war is to subdue the enemy without fighting
The Supreme art is to win in the market without fighting the market, Never ever go against market trend. The market can be irrational long enough for you to stay liquid.
Equity Investing and War Rules Remain the Same. Its all about following a consistent strategy, Research, Position Sizing, Risk Management and Rules.