André Kostolany is the prototype of a self-made XNUMXth century cosmopolitan investor. In this article we will review his personal life, his history as an investor and his successful investment style, spiced up with some of the most famous quotes from this media investor.
Vida de André Kostolany
André Kostolany was born in 1.906 in Budapest, belonging to the Austro-Hungarian Empire. Although he studied philosophy and art history and wanted to be a pianist, his father sent him to work in Paris as a stockbroker. He had to flee to the United States in 1.940 after the Nazi occupation of France due to his Jewish ancestry. He spent most of his life in France and Germany.
He is known worldwide not only for his role as an investor, but also as a popularizer. He worked as a columnist for the German media Capital and In my opinion, André Kostolany's investment style has many traits of value investing. However, it is not an academic value investing like the one that Benjamin Graham's disciples can have, but a “sui generis” style characterized by his cold and logical analysis of investments combined with his knowledge of mass psychology. I believe that Kostolany was not a speculator, but a value investor with a very own style, although he was not aware of it.
"It is not necessary to think if the prices will rise tomorrow or the day after, but in everything that may come in the next few years"
He also knew how to understand the irrationality of the market in the short and medium term, which makes it possible to obtain great profitability in the long term. It seems that he came to the same conclusion as Graham without reading "the smart investor" and his "allegory of Mister Market”, Which we analyzed recently.
"I consider it nonsense to draw decisive conclusions from the observation of different shapes of curve in the graphs, whatever the name that calls them:" saucer "," shoulder-head-shoulder ", etc."
"I have met hundreds of players in my life who traded based on (trading) systems, but I have not met any who in the end did not lose all their money."
As we can see, Kostolany was quite critical with technical analysis and trading, although in my opinion not enough. He recommends not acting against the trend, although if we observe his behavior we can see that it was not exactly what he did during his career. In fact, we can conclude that acting against the trend was what most helped to forge the legend of this investor that still lasts today.