In the preface of the Fourth Edition to Benjamin Graham’s The Intelligent Investor, Warren Buffet writes, “To invest successfully does not require a stratospheric IQ, unusual business insights, or inside information.”
Yet investors often search out the smartest, most educated investment professionals to manage their money, hoping to capitalize on information or research that no one else has. An example of one such professional is Dr. John Hussman. He is the president of Hussman Econometrics Advisors and manages the Hussman Funds. He holds a Ph.D. in economics from Stanford and a Masters degree from Northwestern University. Pretty impressive stuff!
As an investor, Dr. Hussman has a very complex approach to “investing for long-term returns while managing risk”. His website says their key elements in evaluating securities and market conditions are “valuations” and “market action”. “Each unique combination of these conditions results in a distinct Market Climate, with its own profile of expected returns and risk”.
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