“Investment based on genuine long-term expectation is so difficult today as to be scarcely practicable,” wrote Keynes in 1935. Only Buffett since then has shown that Keynes is wrong.
LKY (with his 30-yr investments in Merrill Lynch sold at a big loss after less than a few yrs, Citi and UBS) and Ho Ho Ho (with her investments in the Chinese banks and StanChart) show the wisdom of Keynes.
Advertisements
Baron Keynes was actually quite a successful investor, with personal assets worth US$16.5 million (in today’s money) at the time of his death. He also managed the endowment fund of King’s College for 25 years, beating the FTSE index by average of 8% per annum.
He did this while eschewing the practice of cutting losses & tactical asset allocation. Otherwise his investment results would be even better.
I read somewhere that Keynes after losing money in 1929 depression, started buying shares in 1933 when the world dipped into recession again. He basically bot the index without knowing it.