flintnational
Thinks s/he gets paid by the post
Nice article by Jason Zwieg. A cautionary tale about one of the world's greatest thinkers (and the father of calculus) abandoning sound diversified investing to speculate in a bubble.
"It turns out that Newton had invested prudently and successfully for many years, diversifying his portfolio across stocks and government bonds worth a total of about £32,000 by the start of 1720 (roughly £4.4 million, or $5.7 million, today)."
"“As the bubble continued inflating, it appears that he panicked,” Prof. Odlyzko writes of Newton. The great scientist, throwing his rationality to the winds, plunked £26,000 into South Sea shares on June 14, 1720, at a price of about 700 per share — twice what he had sold them for only a few weeks earlier."
I think Warren Buffet's quote summarizes Newton's experience.
"The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd."
FN
"It turns out that Newton had invested prudently and successfully for many years, diversifying his portfolio across stocks and government bonds worth a total of about £32,000 by the start of 1720 (roughly £4.4 million, or $5.7 million, today)."
"“As the bubble continued inflating, it appears that he panicked,” Prof. Odlyzko writes of Newton. The great scientist, throwing his rationality to the winds, plunked £26,000 into South Sea shares on June 14, 1720, at a price of about 700 per share — twice what he had sold them for only a few weeks earlier."
I think Warren Buffet's quote summarizes Newton's experience.
"The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd."
FN