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MICHEL PIREU: Investment lessons from Einstein
Michel Pireu: ‘If I had one hour to save the world, I would spend 55 minutes defining the problem… ’
It was Albert Einstein who famously said: "If I had one hour to save the world, I would spend 55 minutes defining the problem and five minutes implementing the solution."Many investors flip Einstein’s approach. They have an unstoppable inclination to jump right into the market. They’ll trade impulsively for the first 55 minutes and then allocate the last five minutes trying to figure out what happened.Watching the minutes tick away, most investors would probably be unable to spend as much as 55 minutes trying to correctly understand the investing puzzle at hand. But as one of the greatest minds in history, Einstein knew that success and failure in the last five minutes was entirely dependent on the foundation that was meticulously constructed in the preceding 55 minutes.The markets do not reward investors in proportion to the number of hours spent on investment activities. They only reward execution. One can reap immense profits in a very short period of time if one’s execution is b...
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