In today’s episode, we talking to Dr. Richard Smith. Smith is an expert at momentum investing and is the founder of the popular investing website, TradeStops. During the discussion, Smith explains how a firm understanding of volatility and statistics can enable momentum investors an edge in determining entry and exit points into stocks that are selected based on fundamental advantages.
In this episode, you’ll learn:
· How to trust math and not emotions in your portfolio
· How to mix billionaires’ stock picks with price momentum
· Which sectors have the right trend during March 2018
· If the price action on Bitcoin and other currencies signals bear or bull
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PODCAST TRANSCRIPT AND SUMMARY (Automated)
Preston: [00:00:02] Hey how’s everyone doing out there. So on today’s show we have an amazing guest that’s taken the fundamentals of statistical analysis and applied it to a system for being a successful momentum investor. Our guest name is Dr. Richard Smith and he’s a graduate of UC Berkeley and other esteemed institutions with a degree in mathematics and systems science. He’s the founder of a highly successful investment website called trade stops and his site provides recommendations for entry and exit points on stocks completely based on the price action. Now we’ve heard about this approach from previous guests like Wesley Gray James and Patrick O’Shaughnessy. But it will be interesting to have a discussion with Dr. Smith because his platform specializes in this approach which is very different than the typical fundamental value investing strategies that we often talk about on this show. As a side note stick was out of town and wasn’t able to join us for this discussion. But he’ll be back with us again in the future episodes. So without further delay we bring you the thoughtful Dr Richard Smith.
: [00:01:24] Alright. So awesome to have everyone with us here. And I’m joined with Dr. Richard Smith right now. And so Richard welcome to the show.
: [00:01:32] Preston It is great to be here. I’ve been following your work for a couple of years now. I love your show. You know I couldn’t be happier to be on here with you and your audience.
: [00:01:42] Well thank you very much Richard. Or we’re very humbled to have you with us here today. So let’s go ahead and start off the show by talking about your background. What was the driving factor in your life that led you to put all the time and effort into creating your own momentum based investing website. Because this is this is a lot of work what you’ve done and I’m kind of curious to hear what your inspiration was.
: [00:02:08] Well I was I started out investing myself in the late 90s. There was a lot of momentum going on in the markets then right. Absolutely followed by March of 2000 when the momentum turned in the other direction. But really I stumbled upon it because I just observed myself as an investor and I kept noticing how I got stuck in big losing positions and I never got stuck in big winning positions correspondingly. So I was like wait a minute you know I’m a reasonably intelligent guy. You know I studied math at Berkeley. I got my Ph.D. in a field called systems science and you know how come this keeps happening to me over and over again. It didn’t make sense it didn’t add up. Right. So then I started looking into you know what tools could help me reverse this pattern I saw in my own investing. And the first thing I came upon was a simple trailing stock strategy literally a 25 percent trailing stop strategy and I started backtesting this against my own portfolio. Other portfolios and it kept improving the performance. And you know why is that what’s going on there. And then I came across the work of Daniel Kahneman and Amos diversity. It’s called Prospekt theory but basically you know I found out that this has been you know very well documented since at least the early 1990s that psychologically when we get underwater on a position we want to take more risk to try to get back to breakeven because we hate losing where we are averse to losses we have loss aversion so that you know kind of behavioral bias towards taking more risk Loomer underwater is what makes us get stuck in our losers.
: [00:04:04] And then but on the flip side when it comes to our winners we are we don’t have any behavioral biases to getting stock in our winners. We actually are risk averse when we’re when we have gains we want to take those gains off the table as as quick as possible. You know we we don’t want to lose those gains. OK. So literally we are risk seeking when it comes to our losses and we are risk averse when it comes to our gains and in my mind that explains 50 percent of the chronic underperformance that the individual investor experiences in the markets that investing is really a behavioral challenge as much if not more as it is an information challenge so everybody spends all this time you know trying to get as much information as possible.
: [00:04:51] But in the end it’s the behavior that you know the bad habits that we have as investors you know really their habits that apply in other areas of life correctly. You know like buying things at a at a discount rate you know. But psychologically in the markets it just trips us up now and then you combine it with the media’s constant hammering on us and trying to get our attention every day and you know work us up into a lather so that we’ll look at their advertising.
: [00:05:19] Well so what’s interesting is you are talking about how you stumbled upon understanding why you were psychologically making mistakes. So then your your approach to solving that was let’s turn to mathematics here and let’s try to develop a protocol or procedure so that when this happens I’m going to trust the math and not my emotions. Right yeah and so. Okay so describe what you built.
: [00:05:47] So I started I was trailing stops and then I started saying Well there’s you shouldn’t use the same trailing stop on every stock I’m sure. So I came up with a volatility based trailing stock strategy to measure the historical volatility on pretty much any stock and to use that as the basis of how much noise or uncertainty is in this stock. If I want to hold it for at least 12 to 18 months.
: [00:06:15] So if a person is hearing that they’re going to immediately think well that’s an exit strategy but how about an entry stat strategy. How do I know when to get it something based on this momentum and the volatility.
: [00:06:27] Absolutely and that was the next step. So I had a good system for getting out of the stock now that I need a good system for getting into a stock or back into a stock that I had gotten stopped at. And so I use that same principle of volatility of something is in a downtrend. The first thing that I want to see is that it has a very solid move off of its downtrend and that it moves up more than its sort of normal expected volatility as I don’t want to get caught in dead cat bounces. So then where the momentum piece really came in was actually combining that with a trained momentum based trend indicator to make sure that I wasn’t getting whipped side too much. So that combination of 1 You know what’s a normal expected volatility for this stock. What’s the normal noise that I should be ok with. You know if this stock’s going up rate how much noise should I allow it expect in the stocks to tell like hey this is just normal movement in this stock. But it did get noisier than that. And you know something else is going on and the might be changing. And then the same thing when it’s in a downtrend how much noise can I ignore. You know how much noise does it need to trigger on the way up in order to tell me hey this is more than just the normal noise in this stock. So basically I quantified noise.
: [00:07:48] So one of the things that stick in I have been playing around with is using a momentum strategy to help us identify falling knives because you know one of the biggest problems with value investing is when a company is a great value pick it’s also usually something that’s heavily out of favor. And for anyone that’s conducted a value investing strategy before there is there are these times when you’ll buy a company that has maybe a great accounting fundamentals and it looks really cheap but the price action is very difficult to endure. And it might just keep going down for the next three months and then it’s testing your temperament. And so we’re trying to first identify companies with the great fundamentals but then only buy those companies once we see a statistical change in the price momentum which suggests that the pain is starting to subside and it’s not going to be so painful from a vantage point where it’s really testing or temperament. So I’m kind of curious to hear your thoughts on that idea.
: [00:08:48] I love it when you’re identifying your own basket of ideas right from one source or another. Right. Your own analysis maybe following the billionaires but somehow this is what I do myself. I have identified my favorite stock pickers basically that I get my ideas from. I put together my basket of ideas and then you know I will not try to catch a falling knife. I will watch those indicators and when I see something basically turn green that I really like you know I’m all over it. Quick incredible story for you Ira. Yes sir. I developed a search engine company back in the late 90s was a publicly traded company on the Nasdaq right at the peak of the Nasdaq. His company was generating like five thousand dollars in revenue a day or five thousand dollars of profits a day. That stock was 20 dollars at the bottom of the Nasdaq as stock was worth one dollar and his company was generating a hundred thousand dollars a day in revenue. It’s on though sometimes the markets throw the baby out with the bathwater you know and yet happen in sectors I and happen in industries. And you know as I think it’s John Maynard Keynes I’m not sure he’s the one but it’s usually attributed to him. The markets can stay irrational longer than we can remain solvent. You have to have some kind of fundamental foundation. And I think for the individual investor right. We’re not Warren Buffett necessarily we’re not going to hold stocks for 20 30 years. So to combine great stock picking good momentum strategy something like that. I think it’s it’s the way individual investors pretty much have to go.
: [00:10:29] So I’m curious people listening to this. They might be interested in and just hearing them. Where are you seeing momentum trends today. At the end of March 2018. What are you seeing as good momentum trends.
: [00:10:42] Consumer discretionary and financials and technology are still in the green. I look at the spider Select Sector. Yes. Right. That break the S&P 500 up into different sectors so consumer discretionary financials and technology are still on the green. And by the way those happen to be the three sectors that the billionaire investors that I follow really love. And one of their biggest debates in consumer discretionary financials and technology. On the downside consumer staples health and utilities are all in the red and that. I’d be staying away from those about commodities. I am bullish on oil. Gold has been in an uptrend now for at least 12 18 months in oil for 18 to 24 months. And oil is is one that I that is I always had trouble investing in oil especially when I first started investing and I was even doing a little work in the futures markets and I would just always get beat up by oil and when I found from my own research was that oil as a commodity is surprisingly volatile.
: [00:11:47] You know I came up with this metric. The volatility quotient or the Q and on oil it’s usually above 30 percent. So then you see these articles in the media oil you know fell more than 10 percent it’s in a bear market. No it’s not.
: [00:12:00] No oil has to fall 30 35 percent for its in a bear market. Anything less than 30 percent is just noise in oil. So it may be 60 bucks you know but it’s got to fall 15 20 dollars you know in order for it to be anything other than just noise. Basically something that you can ignore. Right. Oh falling from 60 to dollars to 50 dollars is no big deal. That’s just the normal expected behavior for oil right. So that kind of insight using that the mathematics basically to say no this is something I can ignore or know this is something I really need to pay attention to has been immensely helpful to me so I’ve been bullish on oil for two years now. You know and it it thrashes around a bit but it thrashes around within its normal expected range. You know. But that could be quite a bit you know but oil at 60 falling down to 50. And I know some of the long term trends that I’m still keeping a close eye on the downtrend in long term Treasury yields. Right. So 30 year Treasury yields. Obviously that’s a big question for the markets right now. We’re in a 30 year downtrend now and that downtrend has not been broken to the upside. With respect to yield you’re saying with respect to yield. Right. These are an uptrend. Yields are in a downtrend you know long term interest rates. I’m not sold on the idea yet that long term interest rates are headed higher. I still think there’s going to be some flight to safety movements coming up. And so you know I think the long term downtrend in long term interest rate yields is still intact
: [00:13:42] And we’re seeing the the inversion of the yield curve you know typically at the end of the credit cycle you always see the short end of the yield curve coming up in the long long tail does cut a hold and put. So that’s interesting. Hey talk to us about the. You mentioned in the bill the billionaire filter. I’ve seen this on your platform. Tell us more about this because this is fascinating and I absolutely love this tool. And I think people here are going to be pretty. This is this is neat stuff.
: [00:14:08] Well like I said you know I’m not a stock picker myself. Right. I really I need a way to narrow the choices my investment choices down from a universe of 10000 different you know publicly traded stocks down to maybe a couple hundred stocks that I feel somebody who knows what they’re doing has really looked at carefully. So you know who better than not who better than some of the world’s greatest investors. To do that for me. So and all of that information is basically you know published for free. What’s Warren Buffett in in terms of publicly traded companies what’s Seth Klarman. David Einhorn Carl Icahn. George Soros. So there all have to publish there and you know their stocks that they’re publicly are publicly held stocks. So I started basically digging into that data and finding out what investments those guys were in and then looking at that for my universe of investment ideas so I’m following about 15 different billionaires right now. You know that collectively is three to four hundred different investment ideas at any one time and basically then I apply my my momentum strategies which in trade stops boils down to a red light yellow light green light system now. And you know I say hey if Warren Buffett likes it and it’s green then I’m seriously considering it and a great example right now is Tiva Teva Pharmaceuticals.
: [00:15:41] So Buffett bought Tiva in the fourth quarter of 20 17 and Tiva just recently turned green in my system so Tiva has moved to the top of my list of candidate stock ideas basically because hey if Buffett likes it that’s good enough for me. And I recently turned green in my system so I’m paying close attention to that stock and considering adding it to my portfolio of it. So you’re basically outsourcing your fundamental analysis to say Warren Buffett works for me. Buffett is my stock analyst. I like it. It works great and it gives you confidence rate in confidence is such an important thing to Aben the mark. It’s you know it’s like you have to be able to live through the storms you have to be able to live through that turbulence. The Web site is. So one kind of quantifying your noise factor how much noise or uncertainty do I have to live with in a stock like Teba but then knowing that hate buffets and Tiva you know it’s got to be you know in a pretty good idea and you need confidence as an investor in the market. So I think that’s a great way to build your confidence. Buying great stocks and then get in them at the right time.
: [00:16:58] So talk to us about portfolio construction. So when you’re thinking through the volatility piece and you’re thinking through all the risks it’s kind of associated with various picks and different sectors and stuff. How do you construct your portfolio. How do you think through that difficult problem.
: [00:17:13] I try to keep it as simple as possible. I’ve mentioned how I came up with a measure of volatility on individual equities that I call the volatility quotient trade. Well I also came up with a way to measure that volatility on your whole portfolio.
: [00:17:29] So just like you can say you know hey Johnson Johnson has a 12 percent volatility quotient which means that if I want to hold that stock for 12 to 18 months at a minimum then I need to be just fine if Johnson and Johnson falls 10 percent now and turns Bakaa so then.
: [00:17:48] But to be able to measure that on your portfolio as a whole is really important how do all the pieces of your portfolio fit together.
: [00:17:55] Basically in terms of correlation rates some stocks are going up while other stocks are going down. So you know Ray Dalio I believe said that the holy grail of investing is 15 good uncorrelated and best and he is so finding investment ideas that are all good but some are going up while others are going down. That’s a very powerful way to put together your portfolio. And so in trade stops they came up with something that I call the portfolio VDARE or the portfolio volatility quotient basically takes the stocks in your portfolio how much you’ve got on each one how volatile each one is. Jack’s back for three years. What that performance of that portfolio would have been and then measures the volatility of that back to equity curve. And so now you have a new investment idea and you can add it to your portfolio just as a test and see if it increases or decreases the overall volatility of your portfolio. It’s really one of the huge pieces of the way I book portfolios together. And then I also use volatility to help me decide how much to invest.
: [00:19:02] So when we are talking about volatility you’re not going to find anything that’s probably more volatile than bitcoin or some of these crypto currencies. I’m curious is this something that you have dabbled in.
: [00:19:15] Because I know I’ve own some bitcoin and I’m kind of curious if you have and how you can approach it with all your volatility tools that you’re using.
: [00:19:25] I have indeed gotten involved myself. I really become a big believer in the cryptocurrency and blocking movement and I’m really excited about it.
: [00:19:35] I think it’s an incredible opportunity for individual investors and I think that you know my word applies a lot because essentially if I boil my work down into a nutshell resting it’s like how do individual investors who are busy to put their lives right but who are have been successful in their lives enough to accumulate some capital right. That they had the opportunity to deploy that capital into financial markets and into speculative opportunities.
: [00:20:05] And that’s a very important function in our economy. And so my work boils down to how do successful people deploy their capital in the financial markets in an intelligent way that still allows them to sleep at night because I think the worst position to be in in the markets is when you’re unsure about what you’re doing when you know the volatility is getting away from you and you start to get emotional in your decision making.
: [00:20:32] Also I’m curious to hear how the results of some of your analysis has worked because we had this massive upturn in bitcoin in December it got clear up to 20000. I think it was at 20000 for no less than 12 hours or something. I think you could probably say the high was more around like 18000. I’m curious how your platform performed through that and you know were you were you invested through that 10 x jump. Well I’m assuming that that you had very strong momentum indicators through that. But I’m also curious where you saw think because I mean we’ve been in a bear market I think the price of bitcoin right now is clear down the 8000 with a 12000 dollar pull off per bitcoin. When were you starting this see momentum signs saying that you hit a top and that it’s time to not be holding a position because I’m assuming right now you’re not holding a position in terms of my red light yellow light green light system.
: [00:21:30] You know the volatility quotient on Bitcoin was about 40 percent. While that means you know hey that’s how much noise you’ve got to be okay with rates when Bitcoin made a top at twenty thousand dollars. You know the 40 percent below that is 12000 dollars. So literally you know. But still my system got into bitcoin at around 2000 dollars. A right up to 20000 dollars in a ride back down to 12000 dollars was you know what you needed to be OK in order to use this system to be long bitcoin. Now I add some other indicators that aren’t part of my trade stop system. I’ve been a big follower of time cycles analysis for 10 years now and I had some other reasons to believe that it was going to top to in late December and frankly possibly bottom in late March right about now. So I actually like the action that we’re seeing in bitcoin today. We saw low back in early February and we saw a higher low recently. You know last weekend I’ve been expecting a near term bottom in bitcoin right about now. But more broadly you know I think just what’s going on with crypto is is incredibly exciting I think it’s incredibly important. I was actually at the IBM think conference earlier this week in Las Vegas. I met with two vice president level executives at IBM and basically told me IBM is all over block chain and you know there’s private block chain and there’s public block chain.
: [00:23:00] Obviously IBM is doing a lot in private. BLOCK chain but but they can’t you know they told me they can’t get away from the public block chain either right. I mean I think a big part of the Cryptome blocking movement is about trust. We’re seeing a lot of lack of trust in big institutions. You know what happened with Facebook this week is an incredible indicator. You know when you can get you know too big and too powerful and lose that trust almost overnight of a massive amount of people. Right. And so that new model of trust that block chain and crypto represent I think is a paradigm shift. It’s something that I think is very worth investors attention and it’s something that I’ve applied my tools to basically to help investors know how to be in this space and that you know and be in it for the long term right. No how much uncertainty are noise to inspect to expect to be comfortable with so that you can be in this space and ultimately capitalize on the potential of this space as an investor you know and not just get Web site in and lose your money.
: [00:24:07] Yeah. No I think that the volatility on that one man you better really be prepared for some wild swings.
: [00:24:13] Yeah. My indicators are basically saying you know it’s stormy seas and Krypto right now we’re not out of the woods. I personally think you know it’s an interesting time to do some some bottom dipping right now. You know and you may be catching a falling knife. But as long as you’re not putting more money into it than you’re comfortable not seen for a year or two I think it’s an interesting time to be doing some bottom dipping but some of my favorite cryptos coins in the space I actually really like like coin right now and Manero which is just an unbelievable uptrend that was hardly dented by the recent downturn at all. You know there’s a site called coin checkup dot com and they have an algorithm ranking system there that looks at the teams and the public support of the network essentially you know the past track record of the teams what their model is what their ideas and either classic Manero and bitcoin rank at the top of that algorithmic. It’s like Storper governance for crypto Gatha be looking into. You know because you’re basically betting on these teams and on these networks and on these ideas at this point no there isn’t. You know Warren Buffett is not encrypted because there is no way to fundamentally value. You know what. What amounts to a new a new paradigm. At this point you know so it is a bet on the teams and on the ideas and on the the people that are attracted to that new business model essentially right. So I think either classic and Manero both have some great technical encouraging signs though they’re both in the red right now according to my system. So you know this is definitely bottom fishing here. You know this is not Haiti or wait until it turns green and it just turned green. Right. But I think those are a couple that people would be well served looking into.
: [00:26:04] Ok. Interesting. So when we were talking and then this is a little bit of a plug sorry guys. This is a little bit of a plug for our Berkshire meeting that we had lunch. I asked Richard I said Richard are you going to come out to the Berkshire meeting in May. And he said you know what I think I will do that. So curious are you excited for the meeting.
: [00:26:25] I’m very excited about it. Very excited has been time with you and your colleagues. And I’ve never been to the Berkshire meeting and you know I really started focusing on the billionaires in the past 18 to 24 months. Buffett obviously stands out by the way just for your readers benefit. My favorite billionaire to follow is David Einhorn and I don’t want to get too far up the track of Buffett here Charlie Munger was one of the first people that really turned me on to the psychology of investing. There’s a there’s a YouTube video of Charlie Munger giving a talk at Harvard about the work of Robert Cialdini. You know who wrote influence rate and then persuasion now. And I had come across Cialdini worth through is looking into marketing myself being a business owner right. You have to know a little bit about marketing and down and then later on seeing Charlie Munger talk about the psychology of investing basically and how he learned about it from reading this book by Professor Cialdini was very influential on me and you know really told really you know gave me a heads up to how smart Charlie Munger really is.
: [00:27:34] It’s funny you were talking about Einhorn because I read his book Falling some of the people all the time. And you can see how just in his writing of that book how smart that dude is. Yeah I mean he is a smart dude traps. I mean just that diatribe of a book about one one stock that he was investing through all this painful experience and just clobbering the the corporate governance in the end the company.
: [00:28:03] It was a it was a fascinating read. I don’t I don’t know if we could do it on the show. I don’t know that it would be a good fit for reviewing on the show. But if anyone wants to read a really interesting book go ahead and read Einhorn’s book it’s pretty cool going back to Buffett for just a minute.
: [00:28:18] You know one of the stocks that Buffett has been buying recently is Apple right. So he first bought Apple back in 2016 and then Apple has been you know at around a hundred dollars maybe average price.
: [00:28:31] He’s still buying Apple today at 170 dollars a share. So he’s actually adding to his winners on the way out. But you know as individual investors most people tend to add to their losers rate you are doubling down on your on your losers race. This momentum thing. Right. And wanting to get away from being risk seeking with my losses to being risk seeking with my gains instead.
: [00:28:56] And if you think about it in terms of businesses were owners of businesses as investors. So essentially when we’re putting more money into the businesses that are losing money and taking money out of the businesses that are making us money that’s. It’s not logical right. But you see Buffett putting more money into the businesses that are making him money.
: [00:29:17] Right. Apple’s going up and he still feels it’s good value. He’s buying on the way up and it’s the exact opposite of what most investors do especially individual investors. You know they just keep buying on the way down. Feeling better and better about you know I’m getting a lower cost basis you know I understand dollar cost averaging I think it’s a very valid way of going about investing but that’s not what most of us are doing. You know we’re doubling down because we are risk seeking when it comes to our losses. We want to get back to breakeven as quickly as possible and break the breakeven theory. Actually won last year’s Nobel Prize in Economics from Richard Taylor. You followed up on Daniel Kahneman Wirch who also got a Nobel Prize. You know Richard Thaler basically showed Yeah you know we do try to get back to break even and and we’ll take extra risk in order to do that. Right. So we got to get past that. Watching Buffett buy Apple on the way up and add to his winners is another thing that just kind of changes my confidence as an investor that that’s the right way to do things.
: [00:30:22] So Richard because I can see behind you. You read a lot of books. I mean your bookshelf behind you is just loaded with books. I love that. I’m curious you know for the for the topics we were talking about today with the use and statistics of volatility and investing and you know Ray Dahlia’s approach what what book out there would you recommend to the audience that you think really kind of encapsulates a lot of the stuff we were talking about today.
: [00:30:52] Well a lot of the stuff I read tends to be surprisingly a little more on the psychological side. So you know I think the work of TearLab around his eye black swan ideas and just understanding risk in the markets and the way that that interacts with us psychologically right a lot of the work on booms and busts. And you know we we have big booms and busts and there’s many booms and busts in our portfolio. Many Imai and I think small booms just right in our own portfolios the kind of understanding the psychology of investing again. I really believe that investing is largely a behavioral challenge. There’s so much good information out there right now. PRESTON There’s so many good tools you can find good sources of investment ideas you can find good tools what you really need are good investor habits. And there’s a lot of good information out today about how habits are formed and how to develop new habits. I think it was maybe the power of habit by Charles Duhigg. There’s a lot of great insights today about how to develop great habits and we need great habits as investors. That’s what is really going to make the difference between success and doubters. I think reading about successful investors. It’s an old book. But the market wizard books right. That was another place where I learned you know hey individual and successful investors they’ll tell you hey 95 percent of the stuff I do ends up being a wash and 5 percent of my decisions lead to you know 80 to 90 percent of my gains. And unfortunately for investors it’s the other way around 5 percent of our decisions lead to 80 to 90 percent of losses. And so reversing that you know imitating great investors reading the work of great investors really that gets you in the mindset of being a great investor and that’s what you really need.
: [00:32:47] Love it. So Richard tell the audience where they can find you. I don’t know if you’re on Twitter but you just tell people where they could reach out to you.
: [00:32:55] So trade stops dot com Tiare E S T O P S dot com. That’s my service online. You can also post a couple articles a week there on the blog. We are on Facebook Twitter. I’m not very active on social media right now and you know tend to be a more private person. But I am a business so I know I got to get out there a little bit. But the blog treys Dobbs is a great place and just to learn about the product and our offerings there that is awesome.
: [00:33:24] Well Richard all I can say is thank you so much for coming on the show. You know I am a fan of your work and it was really fun for me to sit down and chat with you to kind of hear how you how you got to where you’re at today and your mindset and how you’ve designed your platform so this was really a lot of fun. Thank you for your time.
: [00:33:42] Preston I think you are a great voice out there for the individual investor. I think individual investors actually have advantages over big investors and institutions that we don’t fully appreciate. And so I love the work that you’re doing and it’s been a real honor to be on your show.
: [00:33:58] Thank you. Thank you so much sir appreciate that. All right. So that concludes our interview here with Richard Smith. We appreciate your time and we look forward to talking with you guys next week.
: [00:34:08] Thanks for listening to the IP to access the show notes courses for forums. Go to the investors podcast dot com. To get your questions played on the show. Go to Aspe investors dot com and to a free subscription to any of our courses. Antti IP Academy this show is for entertainment purposes only. Before making investment decisions consult a professional. The show is copyrighted by the IP network and written permission must be granted before syndication. We’re rebroadcasting.
BOOKS AND RESOURCES
Richard Smith’s blog at TradeStops
Daniel Kahneman’s book, Thinking Fast and Slow – Read reviews of this book
David Einhorn’s book, Fooling some of the people all the time – Read reviews of this book
Preston and Stig’s discussion of Charles Duhigg’s book, The Power of Habits
Preston and Stig’s discussion of Nasim Tabel’s book, The Black Swan
Crypto research platform, https://coincheckup.com/
Join Preston, Stig, and Richard Smith for the Berkshire Hathway Meeting