Stanley Druckenmiller (Trades, Portfolio) shared his view and the secret of success in a recent charity talk. Here is the link for the transcript.
This is the summary of the talk:
- Very concentrated bets, like Warren Buffett (Trades, Portfolio), Carl Icahn (Trades, Portfolio). Only maybe one or two times a year do you see something that really, really excites you. You bet it, bet the ranch on it.
- Never, ever invest in present. You have to visualize the situation 18 months from now, and whatever that is, that’s where the price will be, not where it is today.
- Earnings don’t move the market. It’s the Federal Reserve Board. It’s liquidity that moves markets.
- Read "Alchemy of Finance", by George Soros (Trades, Portfolio)
- When you see it, bet big
- Passion, the most important thing he looks for in putting money in.
- Look at the performance in the down years
- I am not net short equities. I mean the stock market right now as a percentage of GDP is higher than – with the exception of nine months from 1999 to, it’s the highest it’s been in the last hundred years of any other period except for those nine months. But you know what, when you look at the monetary policy we are running, it should be – it should be about where it is.
