Just One Thing

About the Author

John Mauldin is a leading expert on investment issues. As president of Millennium Wave Investments, he is involved in private money management, financial services, and investments. Mauldin is a prolific author, known for his bestseller Bull's Eye Investing. His extensive experience and deep understanding of the financial markets provide a solid foundation for his book Just One Thing, where he compiles invaluable advice from some of the world's best investors.

Main Idea

Just One Thing: Twelve of the World's Best Investors Reveal the ONE Strategy You Can't Overlook offers readers a unique insight into the minds of twelve highly successful investors. Each expert shares a single, most crucial piece of investment advice that has guided their success. This book serves as a concise guide to mastering the financial markets by focusing on the one thing that matters most in investing, according to each guru.

Table of Contents

1. Rob Arnott - The 2 Percent Alpha Solution
2. Bill Bonner - Mind Your Own Business
3. Ed Easterling - Risk Is Not a Knob
4. Mark Finn - The Triumph of Hope Over Long-Run Experience
5. Dennis Gartman - The 'Not-So-Simple' Rules of Trading
6. George Gilder - The Outsider Trading Scandal
7. Andy Kessler - Investing in the Fog
8. Michael Masterson - The Winner's Rule
9. John Mauldin - Surfing the Millennium Wave
10. James Montier - Psychology Matters
11. Richard Russell - Rich Man, Poor Man
12. A. Gary Shilling - The Long Bond

Rob Arnott - The 2 Percent Alpha Solution

Rob Arnott, chairman of Research Affiliates, emphasizes the importance of improving portfolio performance by seeking a 2 percent alpha. He suggests that investors can significantly boost their returns by focusing on indices that are replicable, objective, and valuation-indifferent.

"A 2 percent alpha doubles your cumulative assets over these longer time horizons of pensions." - Rob Arnott

Arnott introduces the concept of fundamental indexing as an alternative to traditional market-cap weighted indices. By focusing on factors such as book value, dividends, and sales, fundamental indexing aims to create a more stable and reliable measure of a company's worth. This approach reduces the influence of market sentiment and speculation, providing a more solid foundation for long-term investment decisions.

• Implementing fundamental indexing rather than capitalization-weighted indexing.
• Focusing on large and liquid companies without regard to current market capitalization.
• Utilizing fundamental factors like book value, dividends, and sales for index construction.

Bill Bonner - Mind Your Own Business

Bill Bonner, president and CEO of Agora Publishing, advises investors to focus on economic means rather than political means. He emphasizes the importance of private, civilized economic arrangements over coercive political interventions.

"There are no better means for people to get what they want than the economic means - that is, the private, civilized, voluntary arrangements that they work out themselves." - Bill Bonner

Bonner argues that true prosperity comes from voluntary economic interactions rather than government intervention. He suggests that investors should focus on building businesses and engaging in transactions that are mutually beneficial. By avoiding the pitfalls of political manipulation and focusing on genuine economic value, investors can achieve sustainable success.

• Focusing on voluntary and mutually beneficial economic transactions.
• Avoiding political means that involve coercion or deceit.
• Building businesses based on genuine economic value and customer satisfaction.

Ed Easterling - Risk Is Not a Knob

Ed Easterling, president of Crestmont Holdings, emphasizes the importance of understanding and managing risk in investments. He argues that higher risks do not necessarily lead to higher returns and advises investors to assess and control risks prudently.