Keynes economist or a Investor
Which is the best investment method?
There are many method of investment
Fundamental, Technical, insider news, investing using economical cycles,
investment based on greed and fear( investing when Sensex was below10,000 after
50% correction from peak), investment based on dividend yield, investing based
on bottoming of industry cycle(Hotel & Textile in worst phase now) and even
being a contrarian investor George Soros
has excelled.
So it is not in one method of investing
the best investors have used multiple combination legendary investor Warren
Buffet even waited for years to invest in panic of 2008-09 so he waited for
fear in market to invest with greed.
History says John Maynard Keynes
British economist as one of the best speculator and investor who lived during Great
Depression and World War I & II.
After Sub-Prime crisis the global
economy is following Keynesian economics among various policy makers from the
world's industrialized economies. This included discussion and implementation
of economic policies in accordance with the recommendations made by John
Maynard Keynes in response to the Great Depression—such as fiscal stimulus
and expansionary monetary policy.
http://en.wikipedia.org/wiki/2008%E2%80%932009_Keynesian_resurgence
John Maynard Keynes, (5 June 1883 – 21 April 1946)
was a British economist whose ideas have been a central influence on modern
macroeconomics, both in theory and practice. He advocated interventionist
government policy, by which governments would use fiscal and monetary measures
to mitigate the adverse effects of business cycles, economic recessions, and
depressions. His ideas are the basis for the school of thought known as
Keynesian economics, and its various offshoots.
Keynes economist or a Investor
Keynes
was an economist; he was an investor; he was a patron of the arts and a lover
of ballet. He was a speculator. He was also confidant of prime ministers. He
had a civil service career. So he lived a very full life in all those ways.”
Keynes speculated with his personal account, invested on behalf of various
investment and insurance trusts and even ran a college endowment, each of which
had different goals, time horizons, and product mandates.
Upon his
death, he left a substantial personal fortune primarily a result of his
financial market activities. Evidence of Keynes’ investing acumen can be found
in the returns of the King’s College Cambridge UK
This was
quite a feat considering the 1929 stock market crash, the Great Depression, and
World War II occurred over that time frame. But, like all great investors,
Keynes first had to learn some difficult lessons. He was not immune to blowups
in spite of his superior intellect and understanding of global markets. In the
early 1900s, he successfully speculated in global currencies on margin before
switching to the commodity markets. Then, during the commodity slump of 1929,
his personal account was completely wiped out by a margin call. After the 1929
setback, his greatest successes came from investing globally in equities but he
continued to speculate in bonds and commodities.
His
investment philosophy . . . changed in line with his evolving economic
theories. He learned a lot of his theory from his experience as an investor and
this theory in turn modified his practice as an investor.”
