Form a point of view on how markets work and where they are likely to break down.
Choose a philosophy that aligns with your specific risk aversion, time horizon, portfolio size, and tax status. 3. Key Categories of Investment Philosophies Investment Philosophies By Aswath Damodaran Pdf
Markets are generally efficient but fail during periods of extreme uncertainty or change. Form a point of view on how markets
An investment philosophy is a coherent way of thinking about markets and why they make mistakes. It is broader than a strategy (e.g., "buying low PE stocks" is a strategy, not a philosophy). acting rarely (low turnover)
Minimize self-inflicted damage by spreading bets (diversification), acting rarely (low turnover), and staying away from personal weaknesses. 2. The Development Framework