Smart investing, not just results

If a hedge fund investor chose a basket of the highest-priced tech stocks stocks in December 1999, then tragically died, and his fund had to be liquidated in March 2000 at a large profit based on inheritance laws, he was not a smart investor despite his profits.

If a Dutch basket weaver traded all of his machinery and inventory for a tulip bulb in January 1637, then was forced to sell it a month later in a dire need for cash, and he received a 25% profit, he was not a smart investor despite his profits.

To determine if an investment was good, one should examine reasoning behind it to see if it was sound and if it is repeatable. This means some money-losing investments were actually good, and some money-making investments were poor. Over time, if you make good investments, you will make money.

Computer running out of batteries. More on this later.

Keith Foulke - not just value.