Wednesday, 13 December 2017

How did Keynes perform as an investor? (Audio)

John Wasik says:

Excellent piece, but I should note that in researching my book “Keynes’s Way to Wealth,” I discovered that the great economist’s investing skills evolved over time and were enhanced by his notable failures in 1920, 1929 and 1937 when he was nearly wrecked by downturns. Fortunately, Keynes recovered brilliantly and kept investing at the bottom of some of the worst declines in the 20th Century and died perhaps the wealthiest economist ever. Along the way, he pioneered some of the basic principles of value investing. His notion of “animal spirits” is also the cornerstone of behavioral economics and a solid guidepost for anyone trying to outguess the market and rely solely upon metrics like p/e ratios. Sadly, though, he’s rarely given credit for being ahead of his time, although this recent research sheds some new light on his investing acumen.

Power Point Presentation of
The Investment Wisdom of John Maynard Keynes (1883 - 1946)

John Wasik wrote an excellent book titled Keynes's Way to Wealth.

Here are some related comments on John Maynard Keyne's investing prowess.

-- John C. Bogle, founder, The Vanguard Group, author, The Clash of the Cultures: Investment vs. Speculation (from the foreword)
As you follow Keynes from his early years with the Bloomsbury Group, through two world wars and the Great Depression Keynes's theories and practices come to life by way of the historic and personal events that shaped them. Like today's investors, Keynes faced markets roiled by panic, inflation, deflation, widespread unemployment, and war-and he developed a core set of principles to prosper in every climate. With the individual investor in mind, this straightforward guide makes it easy for investors at all levels to implement the action-oriented strategies presented in each of the 10 chapters and start investing like Keynes today by:
  • Buying and holding quality stocks
  • Ignoring short-term news
  • Building diversified portfolios
  • Trading contrary to market momentum
  • Getting the most out of dividend stocks
Using the eloquent insight of a seasoned investment writer, author John F. Wasik digs down into what investments Keynes owned, how he bought and sold them, how his theories guided his investments, and vice versa. He illustrates why Keynes's ideas, insights, and portfolio strategies have withstood the test of time, and how they will continue to produce financial gains for dedicated investors. In a nutshell, Wasik delivers a pragmatic guide to the style of portfolio management practiced by such Keynes followers as Benjamin Graham, Warren Buffett, and Charles Munger.
The smart money gets richer in all types of weather, and so can you by following Keynes's Way to Wealth.
"Intelligent investing ultimately depends on having an intelligent theory of the economy. This story of Keynes's life as an investor illustrates this beautifully."
--ROBERT SHILLER, professor of Economics, Yale University; New York Times columnist; and author of Finance and the Good Society
"The great economist John Maynard Keynes speculated and lost big-time. Out of the ashes, he evolved some great long-term investment strategies that will work for every prudent investor. While picking up tips, you'll also find that this book is a great read."
--JANE BRYANT QUINN, author of Making the Most of Your Money NOW
"I'd always heard Keynes was a talented investor but never knew any of the details. John Wasik's excellent book uncovers that story and reveals Keynes's considerable investing skills. If you enjoy studying great investors, add this book to your list."
--JOE MANSUETO, founder and CEO, Morningstar, Inc.
"With the possible exception of Mark Twain, no one surpasses John Maynard Keynes as a source of pithy financial wisdom and sayings. Keynes's Way to Wealth mines the reasoning and investment experiences behind his quotability, abounty that will simultaneously edify, entertain, and augment your bottom line."
--WILLIAM J. BERNSTEIN, author and principal

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