Saturday, October 3, 2009

WealthTrack: Interview With Peter Bernstein

Another interview from Consuelo Mack and her series on "Great Investors". This comes from Peter Bernstein, who passed away in June at the age of 90. The interviews were taped in 2005 and 2007. Mr. Bernstein was an economist, financial consultant, and author of ten books, including Against the Gods: The Remarkable Story of Risk.

From the 2005 taping, Mr. Bernstein talks about how the "consequences (of one's decision) matter more than the probabilities." He believes "passionately in diversification." His take on investment opportunities: "the United States is very well worked over as an investment opportunity, so I think one goes abroad."

From the 2007 interview, he states that "we can't manage returns....but we can manage our risks." This is very true and very consistent with my rule #6 of "11 Rules For Better Trading". Rule #6 states: "Money management, money management, money management. It is so important that it is worth saying tree times. There are so few factors you can control in the markets, but his is one of them. Learn to exploit it."

The thing that worries him the most is the Dollar.

The interview is 30 minutes in length.

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