(a) "Market price reflects consensus view but not necessarily right view."

(b) When reviewing information ask yourself "And who else knows this?"

• Your edge must be on information or analysis or both

(c) Growth v/s Value investing

• Growth == value tomorrow
• Value == value today
• Both require an opinion regarding the future

(d) "Being too far ahead of your time is indistinguishable from being wrong."

(e) Drivers of the market

• Fundamentals (value investing i.e. analysis of company)
• Technicals (short term irrationality i.e. looking at prevailing prices)
• Psychology (understand psychology, investing is popularity contest)

(f) "Risk is subjective, hidden and quantifiable"

• Risk is beyond VaR; ES - it is possibility of loss
• Risk means more things can happen than will happen
• Adequate investors must be risk averse for returns to have a risk premium baked in
• "Better safety gear entices climbers to take more risk"

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