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What Makes a Great Investor?

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Summary

This article discusses what it takes to be a great investor. It looks at the stories of Robin Knox-Johnston, who became the first person to sail alone, without stopping, around the world; Captain Sully Sullenberger, who famously landed US Airways Flight 1549 in the Hudson River; and Warren Buffett, who wrote an op-ed in 2008 encouraging investors to "Buy American". The article argues that it takes more than just achieving a successful result to be a great investor; it also requires resilience and wisdom gained from overcoming adversity. The article encourages investors to enjoy the current calm markets, but to remember that greatness is achieved in difficult times.

Q&As

What has the S&P 500 and Nasdaq 100 done in the past year?
The S&P 500 is up more than 20% and the Nasdaq 100 is up more than 44% through July.

What did Robin Knox-Johnston do in April 1969?
Robin Knox-Johnston became the first person to sail alone, without stopping, around the entire world.

What was US Airways Flight 1549's experience like before disaster struck?
US Airways Flight 1549 was completely routine and unremarkable for the first 100 seconds.

What did Warren Buffett write in his op-ed in October 2008?
Warren Buffett wrote an op-ed titled "Buy American. I am."

What is the common theme in the stories of Robin Knox-Johnston, US Airways 1549, and Warren Buffett?
The common theme in the stories of Robin Knox-Johnston, US Airways 1549, and Warren Buffett is that smooth seas don't make great sailors, clear skies don't make great pilots, and calm markets don't make great investors. Being great is about more than just the final achievement; it's about the struggle, resilience, and wisdom that only comes from overcoming adversity along the way.

AI Comments

👍 This article provides an insightful look into the qualities that make a great investor and draws parallels between investing and other areas of life.

👎 This article fails to provide any concrete strategies for becoming a great investor, instead relying on abstract principles.

AI Discussion

Me: It's about what makes a great investor. It talks about how the current strong markets don't necessarily reveal what it takes to be a great investor. It then goes on to explain how great investors must have the perseverance, resilience, and wisdom to overcome adversity and hard times in investing.

Friend: That's really interesting. It makes sense that great investors would need to be resilient and have the wisdom to be successful. It's also interesting that the article emphasizes the importance of being prepared for the ups and downs of the markets.

Me: Yeah, it's important to remember that while the markets may be strong right now, they could turn around at any time. It's important to be prepared for the difficult times as well as the good times.

Action items

Research the stories of Robin Knox-Johnston, Captain Sully Sullenberger, and Warren Buffett to gain a better understanding of their journeys and the lessons they learned along the way.
Create a plan for how to handle the next market downturn, including strategies for staying calm and making wise decisions.
Take the time to reflect on your own experiences with adversity and how they have shaped your approach to investing.

Technical terms

S&P 500: Standard & Poor's 500 Index, a stock market index that tracks the performance of 500 large companies listed on stock exchanges in the United States.
Nasdaq 100: A stock market index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
VIX: The Chicago Board Options Exchange Volatility Index, a measure of the implied volatility of S&P 500 index options.
Cape Horn: The southernmost tip of South America, located at the southern end of the Tierra del Fuego archipelago.
Roaring Forties: Strong westerly winds in the Southern Hemisphere between 40-50°S latitude.
U.S. Air Force Academy: A military academy located in Colorado Springs, Colorado, that educates and commissions officers for the United States Air Force.
LaGuardia Airport: An airport located in Queens, New York, that serves the New York City metropolitan area.
Teterboro Airport: A general aviation airport located in Teterboro, New Jersey, that serves the New York City metropolitan area.
Treasury bills: Short-term debt obligations issued by the U.S. government with maturities of less than one year.