Bill Bernstein
The Navigator
Judgement in the fog, money, risk and the call others cannot make.
Bill Bernstein reads as The Navigator because he charts the treacherous gap between investment theory and human behavior, terrain his neurologist's training equips him to map. The Efficient Frontier Advisors co-founder designs for the worst two percent of market conditions rather than the comfortable ninety-eight, plotting by stress-tested coordinates instead of optimistic projections.
“Yes, absolutely. There is a man, a very fairly well-known economist by the name of Albert Hirschman, Has a fascinating biography. He was Jewish. He was raised in Berlin. He not only was he Jewish, but he was also a socialist.”
“Well, it's a fairly well established economic, historical subject, which is that what the plague did is it overvalued labor. A third, a half of the population of Europe disappeared. And so that greatly empowered workers. It drove prosperity.”
“Well, that's that directly falls out of Charlie Munger's dictum, which is that, yes, compounding is magic, but the first rule of compounding is never to interrupt it unnecessarily. And you're most liable to interrupt compounding, to panic and sell during the worst 2% of times.”
“That time horizon. Right. Yeah, there's this wonderful little bit of quantitative work done by Mike Hits and Wait Fowl about the reverse glide slope, which is you actually raise your equity allocation the further into retirement you get. If you think about it logically, it just falls right out of that.”
Masters in Business: “Efficient Frontier Advisors Co-Founder & Neurologist Bill Bernstein”
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