Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Mental Models-Allocation Strategies

1,849 views

Published on

The presentation discusses few mental models used for portfolio allocation. This presentation was given by me at Investing Conference organised by Perfect Group on 5 March 11, in Delhi

  • My struggles with my dissertation were long gone since the day I contacted Emily for my dissertation help. Great assistance by guys from ⇒⇒⇒WRITE-MY-PAPER.net ⇐⇐⇐
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Mental Models-Allocation Strategies

  1. 1. Value Investing Mental Models for Allocation
  2. 2. Mind’s blind spots <ul><li>Activity & leverage </li></ul><ul><li>Anchoring </li></ul>
  3. 3. Inactivity & Cash as default position     200 100         Row5 100% 1.00 100%                 214 107 100       Row 4 46% 2.00 100% 7%               229 114 107 100     Row 3 32% 3.00 100% 7% 7%             245 123 114 107 100   Row 2 25% 4.00 100% 7% 7% 7%           262 131 123 114 107 100 Row 1 21% 5.00 100% 7% 7% 7% 7%     CAGR returns Total period Period 5 Period 4 Period 3 Period 2 Period 1 Startin Capital  
  4. 4. Cash as a strategy! <ul><li>Buffett’s AAA cheque writing ability </li></ul><ul><ul><li>Waiting for big fat elephant </li></ul></ul><ul><li>Buffett’s Grand-dad’s advise </li></ul><ul><li>Charlie Munger solution – sitting on ass </li></ul><ul><li>Seth Klarman’s cash holdings </li></ul>
  5. 5. Anchoring
  6. 6. Anchoring
  7. 7. Anchoring
  8. 8. Thank you

×