The hedge fund known as "Long Term Capital Management" collapsed last fall through overconfidence in its highly leveraged methods, despite I.Q.'s of its principals that must have averaged 160. Smart people aren't exempt from professional disasters from overconfidence. Often, they just run aground in the more difficult voyages they choose, relying on their self-appraisals that they have superior talents and methods.
Luxury is feeling unrushed. It is designing a life that allows you to do what you want with high leverage, with many options, all while feeling unrushed.
You never want to have Yadier Molina up with the bases loaded in the World Series, but, dammit, you wouldn't want a better hitter up. Maybe that's not the way most people think, I don't know. That's how I think.
I loved to hit with men on base and with the game on the line.
My whole philosophy is working smarter and not harder. And making sure I'm using little effort and getting a huge effect.
Hedge funds are not noted for their long-term thinking - for them, a quarter is an eternity.
If I'm a bank, and I'm making risky loans, I have an incentive, if I can, to make those loans using other people's money: in other words, to make highly leveraged loans.
You have to have a short memory as a closer.
