Michael Steinhardt’s inspiring notes on his success and the stock market
There are not many videos or interviews with Michael Steinhardt, but the ones you can find are a great source of inspiration. Here are a few excerpts from a talk by the legendary hedge fund manager and philanthropist:
“A lot of people deny the gambling aspect of the stock market, I don’t. It has that element and you have to deal with that.”
“My father gave me $5,000 in stocks, and that had a major impact in my life, when he trusted that to me it became my main responsibility and focus. From the age of 13 on, the stock market became my obsession, my life.”
“Then I went to school, focused on finance, graduated at 19 and immediately got a job in the stock market, from that point until I was fired at 54 years of age, that’s all I did. It really consumed my life. All I cared about was my own ability to pick stocks, to make judgements on what was gonna go up and what was gonna go down, using all available methodology to do that — which related to economics, individual finance, many different things. It was a very silly endeavor, and behind all that I studied and dedicated, it was the feeling that I had to follow my father as a gambler. What I did was a form of sophisticated gambling. I was never 100% sure that gambling and stock market was really in the end all that different.”
“In my business, I think because I started so early and was so focused on it, I was extremely successful. When people ask me what to do professionally, what industry to focus, I always answer that old cliché : ‘You should really do what you love. If you’re lucky enough to love what you do, that solves a lot of problems. Find something you can devote your entire being to, something that can catch you both intellectually and spiritually, and can be your life’s work in a wholistic way’. To me that was the stock market.”
“The cheapest education in the stock market is to put your own money on it, enough to get you very upset if you loose it. That process of wining or losing will force you to really educate yourself on it.”
Below is the full video. Audio quality is pretty bad though.