An autodidact is a self-taught person. They are people that know how to first quantify what they want to learn, then identify the best sources to learn what they need know from, and finally do the work to learn what they need to know. Putting their new found knowledge into practice to achieve goals is … Read more
An investment is buying an asset with intrinsic value that has cash flow and/or physical asset value. Speculating is buying something in an expectation of future price appreciation based on the belief that price will go higher based on others buying it or it becoming valuable or creating cash flow in the future.
Alpha (α) is used in investing as a measure of performance of returns of an investment or investor returns that are higher than a relative benchmark index. Alpha is the term used in investing to describe an investment strategy’s ability to beat the average market returns with an edge. Alpha refers to excess return or abnormal rate of return is in contrast to the academic theory that markets are efficient and no way to beat them consistently.
Michael Burry is a famous investor that made his fortune shorting the housing market in 2007-2008 using derivatives. He manages Scion Asset Management, LLC. He’s a deep value investor looking for stocks below fundamental company value. He will also sell short stocks that are fundamentally far too high based on intrinsic current and future company value.