trading level, 5
value, losses, 142
Dreman, David, 76
Dropbox, Sacca noninvestment, 150–151
Druckenmiller, Stanley, 97 earnings, 101
errors, 157
fame, 100–101
yen bet, 103
Duquesne Capital Management, 102
Dynamic conservatism, 50
Economic Consequences of the Peace, The, (Keynes), 122
E.F. Hutton, founding, 17
Einhorn, David, 27
Ellis, Charlie, 38, 99
Emotions, control, 93
Endowment effect, 75
fund, Keynes control, 123
Energizer Holdings, value, 91
Enron, 113–114
eToys, valuation, 58
Exchange‐traded funds (ETFs), 157 Graham recognition, 7
leverage, 131, 159
proliferation, 57
Exchange‐traded notes (ETNs), proliferation, 57
Explorer Fund, decline, 50
Exxon Mobil, shareholder wealth, 109
Facebook acquisition, 150
Fairchild Camera, trading level, 70
FAZ, 159
Federal Reserve interest rate increase, 61
quantitative easing program, 134–135
Federal Reserve Bank of New York takeover, 42
Federal Reserve Board, 39
Federal Trade Commission (FTC), Herbalife charges, 93–94
Ferriss, Tim, 150
Fidelity Capital Fund, 68
Fidelity Capital, initiation, 71
Fidelity Funds, 68
Fight or flight system, 27
Financial commitments, 163
Financial crisis, aftermath, 134–135
First Index Investment Trust initiation, 51–52
performance, 52
Float, 79
Fooled by Randomness (Taleb), 42
Foreign stocks, 60–61
Frankel, Bethenny, 163
Freud, Sigmund, 9
Fundamentals, 100
Futures contracts, usage, 131
Galbraith, John Kenneth, 67, 121
Gates, Bill, 57
General Electric shareholder wealth, 109
stock market valuation, examination, 6
General Theory of Employment, Interest and Money, (Keynes), 121, 124
Generation Z, 151
George, David Lloyd, 122
Gerber, comparison, 91
Global monetary system, 122
Go‐go, term (usage), 49
Go‐Go years, 48–50, 59
Go‐Go Years, The, (Brooks), 68
Gold purchase, 105
value, loss, 135
Goodwyn, Jerry, 68
Google, compounding, 139–140
GoPro, 150
Gotham Partners, 88 closure, 89
Government Employees Insurance Company (GEICO), 78 Buffett interest, 78–79
Gracian, Baltasar, 131
Graham, Benjamin, 1, 3, 78, 157 Dean of Wall Street, 3
teachings, 11
Graham Corporation, arbitrage techniques, 7
Graham‐Newman Corporation, 9
Grant, Ulysses S., 29–30
Great Crash, The, (Galbraith), 67
Great Depression, 48, 52, 68, 126, 147 Dow value, losses, 142
Great Financial Recession, 142–143
Griffin, Dale, 81
Griffin, Tren, 81
Grove, Andy, 57
Gutfreund, John, 39
Haghani, Victor J., 39
Harris, Hutton & Company, 17
Harris, John B., 111
Hartford Accident Insurance Company (Twain investment), 28
Hartford Courant (Hawley ownership), 29
Hawking, Stephen, 37
Hawkins, Gregory, 39
Hawley, Joseph Roswell, 29
Heath, Thomas, 114
“Hedge Fund Miseries” (Steinhardt), 59
Heinze, Augustus/Otto, 19
Hemingway, Ernest, 28
Herbalife Ackman crusade, 3, 90–92
FTC charges, 93–94
sales, 91
stock, increase, 92
Heuristics, dangers, 16
H.H. Brown, Berkshire purchase, 79–81
High‐frequency trading Graham recognition, 7
Hilibrand, Lawrence, 39
Hindsight bias, 148
Hong Kong Land & Development Authority, investments, 40
Housing bubble, 132–133
Huckleberry Finn (Twain), 28
Human beings, motivation, 147
Hutton, Edward, 17
IBM investment, 50
shareholder wealth, 109
trading level, 70
Icahn, Carl, 92
Ignorance, Confidence, and Filthy Rich Friends, (Krass), 27–28
Index funds creation, 47, 52
momentum, 47
“Inflated Treasuries and Deflated Stockholders,” 8
Information impact, 119–120
processing inability, 87
Initial coin offering (ICO), 148
Insolvency, rules, 31
Instagram, Sacca investment, 149
Insurance payments, problems, 134
Intelligent Investor, The, (Graham), 4, 6, 121
Interest rates, Federal Reserve increase, 61
International bonds, US bonds (spreads), 41
Internet stocks, overvaluation, 104
Intrinsic value, determination, 5
Inverse ETF, purchase, 23
Investing purpose, 119
risk management, 23
uncertainty, 23
Investment values, 6
Investors appraisal, 6
cognitive/emotional biases, 5–6
expectations, 120
information usage, 87
preference, change, 47
searches, 5
Irrational confidence, 161
Irrational Exuberance (Shiller), 126
Irving, Henry, 30
Ivest Fund, 49–50
J.C. Penney, Ackman targeting, 90
Jobs, Steve, 148
Johnson, Edward, 68, 69
Johnson, Ned, 69
Jonas, Stan, 39
Jones, Paul Tudor, 15, 52, 103, 119, 159
Jordan, Michael, 105
JP Morgan, liquidity, 19
Kahneman, Daniel, 5, 15, 75, 87
Kahn, Irving, 4
Keller, Helen, 31
Kennedy Slide, The, 70
Keynes, John Maynard, 117, 121, 157 education, 122
endowment fund control, 123
First Bursar, 123
Kickstarter, Sacca investment, 149
King's College assets, decline, 126
endowment, 123–124
Estates Committee memo, 125
Klarman, Seth, 57
Knetsch, Jack Louis, 75
Kovner, Bruce, 103
Krass, Peter, 27
Kuwait, pension fund, 40
Leverage, impact, 41
Lewis, Michael, 39
Listerine, comparison, 91
Little Book of Common Sense Investing, The, (Bogle), 159
Livermore, Jesse (JL), 13, 15–16 bankruptcy, 21
Boy Plunger, 18, 20
lesson, 22
rebound, 19
windfall, evaporation, 18
Loeb, Dan, 92
Long‐Term Capital Management (LTCM), 104 arbitrage strategies, 41
fall, 42
Federal Reserve Bank of New York takeover, 42
founding, 38–39
problems, Russia (impact), 41
success, 40–41
Long‐term investment program, building, 62
Loomis, Carol, 40, 41
“Loser's Game, The” (Ellis), 38
Lowell Shoe, 80
Lowenstein, Roger, 4, 7, 68
Lowercase Capital, 149
Macro traders, problems, 103
Manhattan Fund (Tsai), 69, 71
Margin of safety,
5, 8
Market capitalization, 7
growth, 120
psychological forces, impact, 124
Market participants, stock motivation, 109
Market Wizards (Schwager), 159
Markowitz, Harry, 147, 152
Marron, Donald, 40
Marx, Karl, 4
Mauboussin, Michael, 38, 100, 131
MBIA, Inc. Ackman targeting, 90
credit default swaps, 133
McDonald's, Ackman targeting, 89–90
Mensa, 37–38
Meriwether, John, 35, 38
Merrill Lynch, 40
Merton, Robert, 39 Nobel Prize in Economics, 40–41
Microsoft, shareholder wealth, 109
Mohawk Data, trading level, 70
Money Game, The, (Smith), 68
Morgan Growth Fund, decline, 50
Morgan, Walter, 47–48
Morse, Charles, 19
Mortgage bonds, insuring, 133
Mullins, David, 39
Munger, Charles, 37, 78, 119, 137, 139 investment, 140
returns, 141
wealth, compounding, 143
Mungerisms, 3, 140
Mutual funds, superiority, 47–48
NASDAQ 100 index, increase, 57, 143
NASDAQ Composite, gains, 112
NASDAQ peak, 105
National Indemnity, Buffett purchase, 78
National Mutual, losses, 125
National Student Marketing, shares purchase, 70
Nebraska Furniture Mart, store opening, 78
Neill, Humphrey B., 67
Netflix, 139–140
Net working capital, 5 term, usage, 4
New Century Financial, 134
Newton, Isaac, 37
New York Institute of Finance, 4
New York Stock Exchange (NYSE), 4 listed stock trading, 135
opening, 147
shares, trading level (1934), 6–7
New York Vaporizing Co. (Twain investment), 28
No Bull (Steinhardt), 58, 60
Nocera, Joe, 90
Not safe for work (NSFW), Snapchat categorization, 151
Nudge (Thaler), 126
One‐decision stocks, 50
Options, usage, 131
Oreos, comparison, 91
Oregon Transcontinental Railroad, Twain share purchase, 29
O'Reilly Automotive, Sequoia holding, 111
Overconfidence, impact, 61, 75–76, 82
Overtrading, 159
Paige Compositor Manufacturing Company, 31
Paige, James, 30
Paine Webber, Livermore exit, 16
Palmolive, comparison, 91
Paulson & Co., founding, 132
Paulson, John, 3, 129, 131–132 merger/arbitrage, 133
Pearson, Mike, 113 Buffett, contrast, 114
Pellegrini, Paolo, 132–133
Penn Dixie Cement, shares (purchase), 58
Pershing Square Capital Management, 89
Pittsburgh National Bank, 101
Plasmon (Twain investment), 28
Polaroid, trading level, 70
Poppe, David, 114
Portfolio turnover, 69
Portugal, Ireland, Italy, Greece, Spain (PIIGS), 158
Post‐go‐go years meltdown, 147
Post III, William, 131
Price, Teddy, 19–20
Princeton University, 47–48
Private/public investing, history, 149
Profit sharing, 68
Prospect Theory (Kahneman/Tversky), 126
Pyramid schemes, 93
Qualcomm, gains, 57
Quantitative easing program, 134–135
Quantum Fund, 100, 103
Ramirez, Alberto/Rosa, 132
Rational thinking, suspension, 27
Recession, odds (calculation), 38
Renaissance Technologies, 135
Return on equity, term (usage), 4
Reverse crash, 100
Risk, arrival, 32
Risk management, 23
Roaring Twenties, bull market cycle, 7
Robertson, Julian, 58
Roche, Cullen, 99
Rockefeller, John, 30
Rogers, Henry (“Hell Hound”), 30–32
Rooney, Frank, 80, 81
Rosenfeld, Eric, 39, 41
Ruane, Bill, 4, 109, 112
Ruane & Cunniff, 112
Ruane, Cunniff & Goldfarb, 110–111
Russell 3000, 135
Russia, Quantum Fund loss, 103–104
Sacca, Chris, 145, 149–150
Salomon Brothers, 39 Buffett investment, 79
Samuelson, Paul (remarks), 51
San Francisco Call, 31
Schloss, Walter, 4
Schmidt, Eric, 150
Scholes, Myron, 39 Nobel Prize in Economics, 40–41
Schroeder, Alice, 80
Schwager, Jack, 159
Sears, Ackman targeting, 90
Sears Holdings, 109
Securities and Exchange Act, 7
Securities and Exchange Commission (SEC) 13D registration, 90
creation, 22
Security Analysis (Graham), 3–5
See's Candy Berkshire Hathaway purchase, 78
purchase, 142
Self‐esteem, satisfaction (impact), 75–76
Sequoia Fund, 107 operation, 110–111
Shiller, Robert, 75–76, 87
Short squeeze, 93
Silvan, Jon, 94
Simmons, Bill, 151
Simons, Jim, 135
Slack, Sacca investment, 149
Smith, Adam, 68, 121
Snapchat, 151
Snap, going public, 151
Snowball, The, (Schroeder), 80
Social activities, engagement, 87–88
Soros Fund Management, losses, 105
Soros, George, 58, 60, 100, 103 interaction, 102
reform, 121
South Sea Company shares, 37
Speculation, 15 avoidance, 28
SPY, 62
Stagecoach Corporate Stock Fund, 52
Stamp revenues, trading, 141–142
Standard Oil, 30
Standard & Poor's 500 (S&P500) ETF, 62
gains, 112, 114
performance, comparison, 119
shorting, 163
Valeant performance, comparison, 113
Steinhardt, Fine, Berkowitz & Company, opening, 58
Steinhardt, Michael, 55, 58 performance record, 59–60
Steinhardt Overseas Fund, 60
Stoker, Bram, 30
Stock market, choices, 114–115
Stocks crashing/reverse crashing, 100
return, 99
stock‐picking ability, 88
Stock trader, training, 18
Strategic Aggressive Investing Fund, 102
Sunk cost, 110
Sun Valley Conference, 57
“Superinvestors of Graham‐and‐Doddsville, The,” 111–112
Taleb, Nassim, 42
Target, Ackman targeting, 90
TDP&L, 50
Tech bubble, inflation, 57
Technivest, 50
Thaler, Richard H., 75, 126
Thinking, Fast and Slow, (Kahneman), 15
Thorndike, Dorain, Paine & Lewis, Inc., 48
Time horizons, 120
Time Warner, AOL merger, 49
Tim Ferriss Show, The, (podcast), 150
Tim Hortons, spinoff, 89
Tract on Monetary Reform, A, (Keynes), 125–126
Trader (Jones), 119
Trustees Equity Fund, decline, 50
Tsai, Jerry, 65, 68 stocks, trading, 69
ten good games, 71
Tsai Management Research, sale, 70
Tversky, Amos, 81
Twain, Mark (Samuel Clemens), 25, 27, 75 bankruptcy filings, 32
money, losses, 27–32
public opinion, hypersensitivity, 31
Twilio, Sacca investment, 149
Twitter, Sacca
investment, 149–150
Uber, Sacca investment, 149
Undervalued issues, selection, 10
Union Pacific, shares (sale), 18
United Copper, cornering, 19
United States housing bubble, 132
University Computing, trading level, 70
US bonds international bonds, spreads, 41
value, decline, 61
U.S. housing bubble, impact, 132
U.S. Steel, shares orders, 17
US stock portfolio, diversification, 109
U.S. stocks, intra‐year decline, 147
Valeant Pharmaceuticals, 113 Ackman targeting, 90
performance, S&P500 comparison, 113
shares, decline, 114
Valuation metrics, 160
Value at risk (VAR), 41–42
Value investing, function, 10
Value investors, problems, 58
Vanguard 500 Index returns, 52
size, 47
Vanguard Group, Inc., 51
VeriSign, Druckenmiller purchase, 104
Vranos, 133
Washington Post stocks, problems, 58
Wayne, Ronald, 148
Webster & Company bankruptcy, 31
Big Mistakes Page 17