Choose a philosophy that aligns with your specific risk aversion, time horizon, portfolio size, and tax status. 3. Key Categories of Investment Philosophies
An investment philosophy is a coherent way of thinking about markets and why they make mistakes. It is broader than a strategy (e.g., "buying low PE stocks" is a strategy, not a philosophy). Investment Philosophies By Aswath Damodaran Pdf
Markets are generally efficient but fail during periods of extreme uncertainty or change. Choose a philosophy that aligns with your specific
Damodaran categorizes approaches based on their view of the "gap" between price and value: Investment Philosophies By Aswath Damodaran Pdf
Master the basics of risk measurement and valuation.