Investing is perhaps the only profession in the world where experience can be just as much of a drawback as a benefit. The world is always changing and investors need to keep up to date with the latest developments or else they could fall behind. At the same time, they need to ensure they don’t let their experience get the better of them. Every market cycle is different and just because you were able to navigate one downturn successfully does not mean you will be able to get through the next.
The list of formerly great investors who’ve blown up due to overconfidence in their abilities is endless. The latest figure is Carl Icahn. Formerly a fierce corporate raider, he’s lost somewhere in the region of $9bn shorting equity markets over the past decade and is currently engaged in a fight with the short-seller Hindenburg Research. Hindenburg’s attack on Icahn’s holding company has forced him to go on the defensive, although it looks as if the attacker is currently winning. Icahn’s net worth has plunged from $25bn to just
