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Friday, October 28, 2016

Larry Robbins: Trading with a Great Sense of Responsibility

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 20

“It sounds attractive to try and make a quick buck, but like anything else, real money is made by slowly compounding your returns.” - Andrew Beattie  

Name: Larry Robbins
Age: 47
Nationality: American
Occupation: Portfolio and hedge fund manager

A COMMITTED, ILLUSTRIOUS INVESTOR
Robbins was born into a Jewish family, in Arlington Heights, Illinois. He was a hockey star while in college.



One source says he graduated with honors from the Jerome Fisher Program in Management and Technology at the University of Pennsylvania in 1992, where he received a B.S. in Economics with concentrations in accounting, finance, marketing and a B.S in Engineering, with a major in systems engineering. He became a Certified Public Accountant in 1991. 

Following his graduation, Larry worked at Gleacher & Company, spending three years there. He worked at Omega Advisors (for Leon Cooperman), spending six years.

He left Omega Advisors, establishing his own firm, Glenview Capital Management, in 2000. This firm has been so successful, averaging 15% returns of net of fees per annum. As of July 2014, Glenview Capital Management had about $9.2 billion of capital under management.

Larry was worth US$ 2.3 billion in December 215. He became involved in various charitable activities, and he’s an active supporter of education reform both in New York City and across the U.S. He’s also the Senior Chair of the Wall Street Division of the UJA-Federation.

He’d four sons by his former wife, Amy Robbins. He lives in Alpine, New Jersey, with his current wife, Sarahmay Wesemael. He’s won awards.

What You Need to Know:
1.      It’s no surprise that Larry doesn’t use stops in his trades. There are many traders who don’t use stops and are hugely successful. However, using stops is safer. What does he also do differently? He holds stocks for years, being an investor; and perhaps, that’s one of the reasons why he survives the market in the long run without using stops.

2.      Larry said: If you really want to be a good investor, you cannot just be involved, you have to be committed. It’s not about what you did before but about… persistence and continuity of work effort.

3.      When you’re affected by a bad trading outcome, you’ll need to take it as a lesson. Most traders who lose may be young and inexperienced. They don’t realize how risky it is to walk into the waters without proper knowledge. But those who’ll end up making money in the markets don’t give up… They take what happen to them as a great education.

4.      Larry believes trading isn’t just a job, it’s a passion, though it was almost by accident that he went into the hedge fund and investment business.

5.      As a trader, think like an owner, not like a trader.

6.      A trader who’s been engaging the markets for 12 years is obviously one that has had some success. That success is what allows traders to be responsible and philanthropic.

Conclusion: Gainful speculation is not that hard on paper – know where to buy and where to sell when price looks to be going in your favor. Really, you got to know what it means to buy at a demand zone and sell at a supply zone. You got to know the meaning of doing this. Traders interpret demand and supply zones differently. When they look at the chart, they come with various decisions. You simply need to find ways to survive the markets while doing your own market analysis.

This article is ended with a quote from Larry:

“I don’t think that I have met someone who is very good in the investment business who isn’t hard-working, bright, talented, and focused.” 



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