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7 Lessons from Stanley Druckenmiller's Lost Tree Club Speech
Stan Druckenmiller is one of the world’s greatest money managers and has traded through market cycles for more than 30 years.
In 2015, he gave what is now a timeless discussion about markets and processes at the Lost Tree Club.
Here are 7 takeaways from his speech.
- Druck attests that he is not a genius. He was not in the top percentile at school. Instead, he believes that he made his success from three things:
• Passion for the business
• Great mentorship
• Risk management
- "The mistake I’d say 98% of money managers and individuals make is they feel like they got to be playing in a bunch of stuff. And if you really see it, put all your eggs in one basket and then watch the basket very carefully".
- He says one his mentors taught him two crucial things:
• Never invest in the present; look 18 months out.
• The central bank moves the market, not earnings.
"If you invest in the present, you’re going to get run over!"
- Druck learned from Soros that "when you see it, bet big".
He also humorously remarks that Soros spent 10% the amount of time working than him, and still outperformed.
- When the facts change, you have to be able to change your mind.
- After losing $3 billion on tech stocks during the 2000 bubble, Druck famously said "I didn't learn anything. I already knew I wasn't supposed to do that".
- What Druck looks for in money managers:
• Passion
• Ability to manage bear markets
• Humility and open-mindedness
• Integrity
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