Vitaliy Katsenelson and Michael engage in a conversation that starts with a discussion of The Subtle Art of Not Giving a Fuck by Mark Manson.
Vitaliy Katsenelson, CFA, is Chief Investment Officer at Investment Management Associates. While his primary focus is on discovering under-valued companies for his clients, he is also known for his uncommon common sense, which he has regularly expressed in articles in the Financial Times, Barron’s, Bloomberg Businessweek, the Christian Science Monitor, Institutional Investor, and the New York Post, among other outlets. He speaks frequently to investment groups around the world, and was most recently profiled in Barron’s. Previously, he was an adjunct faculty member at the University of Colorado Graduate School of Business, and he is also the author of Active Value Investing.
In this episode of Trend Following Radio:
Is it worth swimming in shark-infested waters to surf a 50-foot, career-record wave?
Is it riskier to make an action movie or a horror movie?
Should sex workers forfeit 50 percent of their income for added security or take a chance and keep the extra money?
Most people wouldn’t expect an economist to have an answer to these questions–or to other questions of daily life, such as who to date or how early to leave for the airport. But those people haven’t met Allison Schrager, an economist and award-winning journalist who has spent her career examining how people manage risk in their lives and careers.
Whether we realize it or not, we all take risks large and small every day. Even the most cautious among us cannot opt out–the question is always which risks to take, not whether to take them at all. What most of us don’t know is how to measure those risks and maximize the chances of getting what we want out of life.
In An Economist Walks into a Brothel, Schrager equips readers with five principles for dealing with risk, principles used by some of the world’s most interesting risk takers. For instance, she interviews a professional poker player about how to stay rational when the stakes are high, a paparazzo in Manhattan about how to spot different kinds of risk, horse breeders in Kentucky about how to diversify risk and minimize losses, and a war general who led troops in Iraq about how to prepare for what we don’t see coming.
When you start to look at risky decisions through Schrager’s new framework, you can increase the upside to any situation and better mitigate the downside.
Bio: Allison Schrager is an economist, journalist at Quartz, and co-founder of LifeCycle Finance Partners, LLC, a risk advisory firm. Allison diversified her career by working in finance, policy, and media. She led retirement product innovation at Dimensional Fund Advisors and consulted to international organizations, including the OECD and IMF.
Michael talks with Larry Hite about his first book The Rule.
It's the empowering story of Larry Hite’s unlikely rise to the top of the hedge fund world―with critical insights and lessons you can take to the bank
Larry recounts his working-class upbringing in Brooklyn as a dyslexic, partially blind kid who was anything but a model student―and how he went on to found and run Mint Investment Management Company, one of the most profitable and largest quantitative hedge funds in the world.
Hite’s wild success is based on his deep understanding that markets are flawed―just like people. Through his early-life struggles and failures, Hite came to know himself well―his fears, his frustrations, his self-doubt, and his tolerance for all of the above. This motivational book reveals that by accepting the facts of his life and of himself, he was able to accept markets as they are. And that was the key to his success.
You’ll walk of the footsteps of an investing legend, who imparts smart, practical trading lessons throughout the journey. Making a successful living in trading isn’t about beating the markets. It’s about meeting markets where they are, embracing the fact of risk, knowing yourself, and playing it strictly by the numbers.
The Rule shows that investing decisions are not only bets or gambles, but investments in time, energy, and attention. By focusing on realistic returns on your investments―versus what you expect or hope to get―you immediately improve your probability for success.
Larry Hite was the founding principal and Managing Director of Mint Investment Management Company. During his 13-year tenure at Mint, the composite of funds achieved a compounded annual rate of return greater than 30% before fees during that period. Hite pioneered the use of the “guaranteed fund” concept, which helped Mint be the first to raise over $1 billion.
The first prescriptive, innovative guide to seeing inflection points before they happen—and how to harness these disruptive influences to give your company a strategic advantage.
Paradigmatic shifts in the business landscape, known as inflection points, can either create new, entrepreneurial opportunities (see Amazon and Netflix) or they can lead to devastating consequences (e.g., Blockbuster and Toys R Us). Only those leaders who can “see around corners”–that is, spot the disruptive inflection points developing before they hit–are poised to succeed in this market.
Columbia Business School Professor and corporate consultant Rita McGrath contends that inflection points, though they may seem sudden, are not random. Every seemingly overnight shift is the final stage of a process that has been subtly building for some time. Armed with the right strategies and tools, smart businesses can see these inflection points coming and use them to gain a competitive advantage. Seeing Around Corners is the first hands-on guide to anticipating, understanding, and capitalizing on the inflection points shaping the marketplace.
McGrath is a globally recognized expert on strategy, innovation, and growth with an emphasis on corporate entrepreneurship. A long-time member of the Columbia Business School faculty, she is recognized consistently as one of the top 10 management thinkers. McGrath’s best-selling book The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business was recognized by Strategy+Business as the #1 business book of 2013. She is also a co-author of MarketBusters: 40 Strategic Moves that Drive Exceptional Business Growth (2005) and The Entrepreneurial Mindset (2000).