Markets Are Designed To Allow Individuals To

My Conceptual Framework, Which Basically Emphasizes The Importance Of Misconceptions, Makes Me Extremely Critical Of My Own Decisions. I Know That I Am Bound To Be Wrong, And Therefore Am More Likely To Correct My Own Mistakes.

As I Discovered, There Is A Great Deal Of Similarity Between A Boom-bust Process In The Financial Markets And The Rise And Fall Of The Soviet System.

The Generally Accepted View Is That Markets Are Always Right -- That Is, Market Prices Tend To Discount Future Developments Accurately Even When It Is Unclear What Those Developments Are. I Start With The Opposite View. I Believe The Market Prices Are Always Wrong In The Sense That They Present A Biased View Of The Future.

If I Had To Sum Up My Practical Skills, I Would Use One Word: Survival. And Operating A Hedge Fund Utilized My Training In Survival To The Fullest.

I Put Forward A Pretty General Theory That Financial Markets Are Intrinsically Unstable. That We Really Have A False Picture When We Think About Markets Tending Towards Equilibrium.