Investing Process

“You have to have a process” Ray Dalio

"In the moment, public market investors have no ability to control investment outcomes, but they can control and improve their own processes... We believe that by remaining focused on following a well-conceived process, we will make good risk-adjusted, long-term investments. And we know that if we do that, we will indeed earn good returns over time" Seth Klarman

“We are very focused on process, as I believe you should focus on process not outcomes. Process is the key to proper risk management.” John Phelan

“I’d say if you don’t have a process, you’re probably doomed in this business because what you have is all of the outside pressures which just grind away at any chance you have for logical decision making” William Browne

"To be a successful investor, you have to have a philosophy and process you believe in and can stick to, even under pressure" Howard Marks

“Ultimately, of course, you want people with good process and good outcomes, but I’d rather have somebody working for me who had a good process and a bad outcome in a given year that somebody with a bad process and good outcome” Dan Loeb

“You want to stay true to the investment process” Kevin Daly

“Controlling your process is absolutely crucial to long-term investment success in any market environment” Seth Klarman

“Confusion between process and outcome is the single biggest source of error in the stock market. After all why not keep buying that hot biotech company with no hope of making money if the share price keeps going up? What’s not to like? A complete loss of capital when the party stops is what’s not to like.” Robert Vinali

“It is possible to be profitable over time even though the majority of trading events will be losers. “Process” will trump the results of any given trade or series of trades” Peter Brandt

“When the process is broken, you can’t invest well. It’s hard enough to invest well when the process is good. So it’s crucial to have a sound process that will enable you to perform this difficult task with intellectual honesty, rigor, creativity and integrity” Seth Klarman

“To be consistently successful, an investor or speculator must have rules to guide him” Jess Livermore

"The need to focus on process rather than outcomes is critical in investing. Focusing on process frees us up from worrying about aspects of investment which we really can't control - such as return. By focusing upon process we maximise our potential to generate good long-term returns" James Montier