I just watched this great interview with billionaire Ken Griffin, founder of Citadel, the most profitable hedge fund in history.
During the interview, he shared a lot of great trading nuggets, and one of my favorites of all was this quote here:
***“My best stock pickers. The best guys that work for me. Obviously, men or women, to be clear. They’re right about 54% of the time in alpha terms.”
This goes back to our Sunday investment club discussions and why I keep reminding us that risk management is paramount and that no 100 percent trade/investment exists. In other words, no matter how great the trade/investment is, even if it’s a 99-to-1 percent setup, you still have to have a plan for that 1 percent of risk that has the potential to wipe you out.
In another part of the same question above, he was asked what is one trait that separates good investors from legendary ones? Coviction.
“I think the legendary investors, going back to earlier, really know when they have an advantage and they press it. They’re confident in their conviction. And as I said earlier, and when they’re wrong, they move on. They just let it go and move on.”
