Learning From Tech CEOs and Hedge Fund Legends

When I was in highschool and college, I had a dusty set of old books that really got me excited about business and technology.  I spent countless hours staying up late and reading biographies about technology visionaries like Andy Grove, Larry Ellison, Bill Gates, and Steve Jobs.  It was around this time that I truly caught the “tech” bug…. at age 18 I KNEW that I wanted to work at a technology company and I set my sights on Intel.

My favorite tech leader by far was Andy Grove and I still have an immense respect for him to this day.  Why Andy Grove?  I think Grove is especially brilliant because he was not only an amazing engineer, but he was equally adept when it came to the business world.  When Intel was growing and did not have a CEO canidate to lead the company through hard times, Grove switched from engineer to CEO at the drop of a hat and the rest is history.  Grove’s story of escaping the holocaust, moving to America with nothing, and then building one of the greatest companies in history is nothing short of amazing.  It’s impossible not to inspired by a guy like that.

I don’t read about these business leaders for good drama; actually I love reading about these business visionaries because you can learn a lot from them.  To this day I still have an insatiable desire to learn about technology, but my focus has gradually shifted to the investment world.

My latest fascination is the underground world of hedge funds.  I have been doing a lot of reading lately about the hedge funds legends like George Soros, Stanley Druckenmiller, Julian Robertson, and Paul Tudor Jones.  These Wall Street titans are cut from a different cloth than tech CEOs, but I think you can also learn a lot from their careers as well.

One book I have been reading lately, More Money Than God by Sebasian Mallaby, provides a great in-depth look into the minds of these brilliant investors.  I still not finished with the book yet, but I have already learned a ton of useful information.  I think this quote from Paul Tudor Jones is especially insightful.

“Every evening I would close my eyes in a quiet place in my apartment.  I would picture myself in the pit.  I would visualize the opening and walk myself through the day and imagine the emotoinal states that the market would go through.  I used to repeat that exercise every day.  Then when you get there, you are ready for it.  You have been there before.  You are in a mental state to take advantage of emotional extremes because you have already lived through them”.
-Paul Tudor Jones II

I think this quote is really applicable to just about every investor out there.  When most traders execute a trade, they only think about one scenario and choose to neglect all of the other scenarios (especially adverse ones).  I see this on the StockTwits streams every day.  A darling stock like $LULU could generate a 30% monthly return, but if the stock drops 3% on one day traders start panicking and letting their emotions get the best of them.

The best solution to avoid these “surprise” emotional highs and lows is to take Jones’ advice.  If you visualize all of the possibilities in advance, you are equipped to manage your risk in an analytical way, rather than an emotional one.

Again, I think it’s extremely important to invest in yourself and self-education is probably the best vehicle.  I spend about 5% of my income on self-education through the form of books and subscriptions because it’s important for me to always learn more about technology and investing.  If you trade with regularity or are passionate about investing, I think studying and reading about the great investors and tech leaders is always a worthy use of your time and resources.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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