When you find a great idea, buy enough of it to make a meaningful difference to your life. Successful investing is not only about being right per se—far from it. Success in investing boils down to how the great ideas are executed, that is, initial allocation and subsequent pyramiding. It is not the frequency of winning that matters, but the frequency times the magnitude of the payoff. Michael Mauboussin calls this the “Babe Ruth effect.” It is what George Soros was referring to when he said, “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right
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