The Art of Trading Without Trading

“I find that coming up with those kinds of lists early on, especially things where I think ‘this would be bad news, this will make the price go down, but I don’t think this is an existential threat,’ is a really good idea,” he said. “It’s really hard to think reasonably when your portfolio is down by half, whereas if you think in advance about what kinds of news would make the price drop but not interfere much with the long-term thesis, then you can be in a better position. A lot of money has been made historically by people who say ‘the news is bad, but it’s not that bad.’”