Capital CasebookStock Market Wizards

Stock Market Wizards

Explore in-depth analysis, real cases and connections across the library.

Illustration for: Stock Market Wizards
Conceptual illustration · not a historical photograph or market data
  1. Change your mind without losing your method

    Distinguish disciplined adaptation from following the latest opinion.

  2. Cheap needs a reason to change

    Separate a low price from a credible revaluation mechanism.

  3. Ask beyond the company’s story

    Build a research chain that can contradict management’s explanation.

  4. A red flag is a question, not a verdict

    Connect valuation, deterioration and timing without confusing suspicion with proof.

  5. Win rate needs a denominator

    Combine frequency, payoff and costs in one expectation.

  6. Who pays for the protection?

    Identify contractual advantage and the risks left outside the contract.

  7. The discipline of letting opportunities pass

    Explain why a selective method deliberately misses many winners.

  8. Study the losses you actually take

    Use a complete trade audit to test an exit rule.

  9. Discipline needs a maintenance plan

    Separate following a live rule from researching its replacement.

  10. Give a catalyst a clock

    Write what should happen, when and what a non-response means.

  11. The distribution is the argument

    Explain why the same average can conceal different option risks.

  12. A discount pays for a constraint

    Identify what an investor gives up in exchange for a lower price.

  13. A beautiful backtest can be an accident

    Explain multiple testing and the need for a prior hypothesis.

  14. When the reason disappears

    Distinguish a changed thesis from an uncomfortable price.

  15. Turn an ambition into observable behaviour

    Separate commitment to a process from pressure to hit a profit number.

  16. Build a coherent method, not a collage

    Reconcile contradictory interview advice by identifying its assumptions.

  17. A payoff is not a profit

    Calculate a simple option payoff after premium and identify the obligation.