Sun Tzu on Investing

SUN TZU ON INVESTING is written by Curtis J. Montgomery, our very own Chief Sage at WallStraits.com. Curtis reaches back 2,500 years in a passionate search for timeless pearls of wisdom and strategic insight from Taoist warrior and philosopher, Sun Tzu.

Foreword

Some of the wisest words for investors can be found in this book, not only because of Curtis Montgomery’s extensive studies but also by the fascinating framework he uses. Applying Chinese philosophy and particularly that of Sun Tzu to investing make a lot of sense. Sun Tzu’s Art of War contains a great deal of wisdom applicable to investing and Montgomery beautifully illustrates this.

Most insightful is his distillation of Sun Tzu’s view that our enemy is within ourselves and the degree to which we are able to recognize and control our emotions will enable us to succeed in war... and in investing. I love the succinct quotations that are so relevant in today’s markets: When you know yourself, you are able to protect yourself. I was particularly delighted by the historical background that Montgomery presents. He writes about Sun Tzu’s methods of using careful planning, strategy and discipline combined with rationality enabling him to weather the challenges of market volatility and confusion. Since the essence of Sun Tzu’s work was an understanding of mass psychology, his teachings are particularly relevant to capital market behavior. Montgomery wisely points out that Sun Tzu’s works are called the Art of War just as investing is an Art not a science. A strategy is a plan, but it is a plan for learning rather than a plan for implementation.

Sun Tzu was not a speculator and was unwilling to take unnecessary risks. Montgomery uses some very humorous examples to illustrate his points. You’ll enjoy the cigar story!

--Mark Mobius
Managing Director
Templeton Emerging Markets Fund
Author of Passport to Profits and Mobius on Emergine Markets

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