MICHEL PIREU: How to approach the manic depressive ways of the market
Stanley Druckenmiller, former chairman and president of Duquesne Capital, says: "It takes courage to be a pig. I’m here to tell you I was a pig. And I strongly believe the only way to make superior long-term returns in our business is by being a pig. "I think diversification and all the stuff they’re teaching at business school today is probably the most misguided concept everywhere. And if you look at all the great investors that are as different as Warren Buffett, Carl Icahn, Ken Langone, they tend to be very, very concentrated bets. "They see something, and they bet the ranch on it. And that’s kind of the way my philosophy evolved, which was if you see — only maybe one or two times a year do you see something that really, really excites you…. "The mistake I’d say 98% of money managers and individuals make is they feel like they’ve got to be playing in a bunch of stuff," he says. "Focus your analysis on seeking to identify the factors that were strongly correlated to a stock’s pri...
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