David R. Henderson  

Abrams on Investing

Krugman's Graph on Food Stamps... Vegetarianism and Social Desir...
I was introduced to the stock market when I was 13. I had a bar mitzvah and my father bought me ten shares of something called Bayuk Cigar. I was outside playing stickball, came in for dinner, and my father opened the newspaper to the stock market pages. He pointed to Bayuk Cigar and it said "plus one." He said, "See this?" I said, "Yeah. So?" He said, "Well you have ten shares of it, so that means you made ten dollars." I said, "Whoa! Wait a minute. You mean I was out playing stickball and I made ten dollars?" He said, "Yes, because you own ten shares of this company." So I said, "Why don't I collect these things? Why don't I just collect stocks? Maybe I would have enough money coming in that I wouldn't have to do anything else." My father got very angry and he said, "I never want to hear you talk like that again. Man survives by the sweat of his brow. Anything to do with investments is strictly on the side." I thought, I don't know what his problem is, but I'm going to collect these things. That's how I got interested.
This is from an interview with investor Larry Abrams in the July 2013 issue of Kaizen. Interesting throughout.

Another fun excerpt:

Perseverance is particularly important. As Churchill said: "Never, never, never give in!" Well, I don't know about never. Very rarely will do.

Explaining his failings in understanding spatial relations and, along the way, giving a nice insight on division of labor and specialization:
I was good at math and English, but in a hunter-gatherer society, I'd probably be considered an idiot.

COMMENTS (4 to date)
Foobarista writes:

The actual Churchill quote is far more useful:

"Never give in, never give in, never; never; never; never - in nothing, great or small, large or petty - never give in except to convictions of honor and good sense"

That "good sense" bit is important, particularly if you're an investor...

kebko writes:

Wonderful interview. Thanks for the link.

David R. Henderson writes:

Thanks for giving the whole quote. I had never seen the whole thing quoted. That's very much like the quote from Ralph Waldo Emerson when people leave out the word "foolish": "A foolish consistency is the hobgoblin of little minds."
You're welcome.

happyjuggler0 writes:

Ok, I can't resist, regarding out of context quotes. Heard of money is the root of all evil?

Here is one long translation of what the (Christian) bible actually said, noting that verse 10 is what is usually referred to as the "full context quote", but it leaves out a lot too:

(note I, a layman, consider verses 1 and 2 detestable, while verses 18 and 19 really do need to be included for context in my opinion)


6 oLet all who are under a yoke as bondservants1 regard their own masters as worthy of all honor, pso that the name of God and the teaching may not be reviled. 2 Those who have believing masters must not be disrespectful on the ground that they are qbrothers; rather they must serve all the better since those who benefit by their good service are believers and beloved.
False Teachers and True Contentment

rTeach and urge these things. 3 If anyone steaches a different doctrine and does not agree with tthe sound2 words of our Lord Jesus Christ and the teaching uthat accords with godliness, 4 vhe is puffed up with conceit and wunderstands nothing. He has an unhealthy craving for xcontroversy and for yquarrels about words, which produce envy, dissension, slander, evil suspicions, 5 and constant friction among people zwho are depraved in mind and deprived of the truth, aimagining that godliness is a means of gain. 6 But bgodliness cwith contentment is great gain, 7 for dwe brought nothing into the world, and3 we cannot take anything out of the world. 8 But eif we have food and clothing, with these we will be content. 9 But fthose who desire to be rich fall into temptation, ginto a snare, into many senseless and harmful desires that hplunge people into ruin and destruction. 10 For the love of money is a root of iall kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs.
Fight the Good Fight of Faith

11 But as for you, jO man of God, kflee these things. lPursue righteousness, godliness, faith, love, steadfastness, gentleness. 12 mFight the good fight of the faith. nTake hold of the eternal life oto which you were called and about which you made pthe good confession in the presence of many witnesses. 13 qI charge you in the presence of God, who gives life to all things, and of Christ Jesus, rwho in his testimony before4 Pontius Pilate made pthe good confession, 14 to keep the commandment unstained and free from reproach until sthe appearing of our Lord Jesus Christ, 15 which he will display tat the proper time—he who is uthe blessed and only Sovereign, vthe King of kings and Lord of lords, 16 wwho alone has immortality, xwho dwells in yunapproachable light, zwhom no one has ever seen or can see. To him be honor and eternal dominion. Amen.

17 As for the rich in athis present age, charge them bnot to be haughty, nor cto set their hopes on dthe uncertainty of riches, but on God, ewho richly provides us with everything to enjoy. 18 They are to do good, fto be rich in good works, to be generous and gready to share, 19 thus hstoring up treasure for themselves as a good foundation for the future, so that they may itake hold of jthat which is truly life.

20 O Timothy, guard the deposit entrusted to you. kAvoid the lirreverent babble and contradictions of what is falsely called “knowledge,” 21 for by professing it some have swerved from the faith.

mGrace be with you.5

[1] 6:1 Or slaves (for the contextual rendering of the Greek word doulos, see Preface)
[2] 6:3 Or healthy
[3] 6:7 Greek for; some manuscripts insert [it is] certain [that]
[4] 6:13 Or in the time of
[5] 6:21 The Greek for you is plural

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