STREET DOGS

Joseph de la Vega was a successful Jewish merchant, speculator, philanthropist and poet. In 1688, he wrote Confusion of Confusions, one of the first books on the subject of speculation. A great takeaway from the book are his four fundamental rules of speculating in shares:

1. Never advise anyone to buy or sell shares. Where guessing correctly is a form of witchcraft, counsel cannot be put on airs.

2. Accept both your profits and regrets. It is best to seize what comes to hand when it comes, and not expect that your good fortune and the favourable circumstances will last.

3. Profit in the share market is goblin treasure: at one moment, it is carbuncles, the next it is coal; one moment diamonds, the next pebbles. Sometimes, they are the tears that Aurora leaves on the sweet morning’s grass, at other times, they are just tears.

4. He who wishes to become rich from this game must have both money and patience. Also from the book: One should trade little because philosophers tell me that in order to increase your strength, you should not eat a lot but rather digest your food well.

He who makes it his business to watch these things conscientiously, without blind passion and irritating stubbornness, will hit upon the right thing innumerable times, though not always. It is a mistake to say that you are not going to err twice.

Question: In this chaos of opinions, which one is the most prudent? Answer: To go in the direction of the waves and not fight against the powerful currents.

It is not important that the basic value of the shares be practically nothing as long as there are other people willing to close their eyes and support those contradictions.