Chapter 6 of my book. Find other chapters here.
Generally speaking, my kids hate playing sports against me. I am lucky enough to have married a very athletic wife, and lucky enough again to have two very athletically gifted children. I am considered the least athletic member of my family. But my kids still hate playing against me.
To compensate for my lack of physically advantages, I almost always develop a strategy to compensate. In racquet sports, if I see you have a weak backhand or don’t like high bouncing balls, then I will make you hit those shots relentlessly. In basketball, I know that younger players want to run, so I aim to drive the ball to get fouled, and then take my free throws very slowly.
In any competitive game, if I am not hated at the end of the game, then I have not tried hard enough.
In finance, I have tried for a similar relentless attitude. I noticed that equity fund managers rarely think about currency risk. At most, they generally assume the past will look like the future. But for me, currencies are that most dangerous of financial assets - very stable for long periods of time, and then suddenly break.
