Рет қаралды 6,308
My summary of the book The Zurich Axioms: The Rules of Risk and Reward Used by Generations of Swiss Bankers by Max Gunther. The book started my speculating and investing career - the title is slightly sensational but it contains a great framework to start speculating.
The book contains 12 major axioms and 16 minor axioms - they can be found below:
Axiom 1: ON RISK
Minor Axiom I: Always play for meaningful stakes.
Minor Axiom II: Resist the allure of diversification.
Axiom 2: ON GREED
Minor Axiom III: Decide in advance what gain you want from a venture, and when you get it, get out.
Axiom 3: ON HOPE
- Minor Axiom IV: Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.
Axiom 4: ON FORECAST
Axiom 5: ON PATTERNS
- Minor Axiom V: Beware the Historian's Trap.
- Minor Axiom VI: Beware the Chartist's Illusion.
- Minor Axiom VII: Beware the Correlation and Causality Delusions.
- Minor Axiom VIII: Beware the Gambler's Fallacy.
Axiom 6: ON MOBILITY
- Minor Axiom IX: Do not become trapped in a souring venture because of sentiments like loyalty and nostalgia.
- Minor Axiom X: Never hesitate to abandon a venture if something more attractive comes into view.
Axiom 7: ON INTUITION
- Minor Axiom XI: Never confuse a hunch with a hope.
Axiom 9: ON RELIGION AND THE OCCULT
- Minor Axiom XII: If astrology worked, all astrologers would be rich.
- Minor Axiom XIII: A superstition need not be exorcised. It can be enjoyed, provided it is kept in its place.
Axiom 9: ON OPTIMISM AND PESSIMISM
Axiom 10: ON CONSENSUS
- Minor Axiom XIV: Never follow speculative fads. Often, the best time to buy something is when nobody else wants it.
Axiom 11: ON STUBBORNNESS
-Minor Axiom XV: Never try to save a bad investment by "averaging down."
Axiom 12: ON PLANNING
-Minor Axiom XVI: Shun long-term investments.