You’ve got to have models in your head. And you’ve got to array your experience—both vicarious and direct—on this latticework of models. You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life. You’ve got to hang experience on a latticework of models in your mind.
The key to successful investing is to have a clear understanding of the market, the risks involved, a disciplined approach, a long-term perspective, and a strong understanding of the fundamentals.
