My mate @AIMInvestTweets kindly offered up the following text regarding the ‘Art of Execution’ to give Readers a view of what is in the Book and to help with some ideas to consider. You may not agree with all the ideas laid out here, but it is extremely valuable to think about what is being said and how you tend to do things yourself and what if anything you could tweak in your own Approach to improve matters. No Approach should ever by set in stone and it is a case of slow adjustments and evolution over the years.
Huge thanks to him for sharing this with us and putting the effort in to make a nicely readable and thought-provoking Blog, and of course you can find a copy of the Book in Wheelie’s Bookshop somewhere.
‘The Art of Execution’ is a book that I have been wanting to read for a while because, whilst there are a plethora of books on stock-picking and the financial markets in general, there are relatively fewer books on investor psychology and what we should actually do once we have bought the stock.
The story behind the book is quite simple. The author, Lee Freeman-Shor, gave 45 of the world’s top investors between $25m-$150m with the strict rule that they could only invest in their ten best ideas. He analysed all their trades and came up with this some interesting observations and collated them into this book.
Part 1 – I’m losing, what should I do?
Group 1 - The Rabbits:
What the Rabbits should have done
Group 2 – The Assassins
Group 3 – The Hunters
Part 2 – I’m winning, what should I do?
An interesting anecdote
The author was invited to dinner with the legendary Crispin Odey. Around the table were a load of legendary investors giving their opposing views. You would think investing is a zero-sum game, that one had to be right over the other. But because of the Art of Execution, they were all winners in their own ways.
Five winning habits
I highly recommend this book for two main reasons:
Given the nature of the book, I would probably only recommend this for people reasonably au fait with the whole investing scene (the type who reads this blog!). It is a very easy read in that it isn’t technical and you don’t need to sit there with a set of accounts, charts, a calculator, and the whole works. I read this is in one sitting at night and it certainly got the old grey matter working.
Many thanks for reading and please feel free to follow @AIMInvestTweets on Twitter.
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