Born in 1957, David Tepper is an American hedge fund manager. In 1985, Tepper was recruited by Goldman Sachs as a credit analyst. He is the founder and president of the hedge fund Appaloosa Management. Tepper’s fund made $7.5 billion in 2009. As for 2020, and according to Forbes, Tepper net worth is estimated at 12 billion US dollars.

 

DAVID TEPPER TRADING TIPS

 

■ Think when others are panicking

Those who keep their heads while others are panicking do well.

 

■ Setbacks are another way to say opportunity

Life takes funny turns.  That’s really important for you guys.  You’ve got a long life. Don’t get upset by setbacks. Setbacks are another way to say opportunity.

 

■ The hardest thing to do is wait

This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.

 

■ The time not to lose money

There is a time to make money and a time to not lose money.

 

■ Always look at the important facts

I think when it comes to decisions, I try not to be emotional. To drown out the noise and look at the important facts.

 

 

■ Leaders are at the front of the pack

We’re at the front of the pack. We are one of the first movers. First movers are interesting; you get to the good grass first, or sometimes the lion eats you.

 

■ Replaying losses in your head

Replaying losses in your head is the only way you learn from your mistakes.

 

■ Believe in your positions

Some of our best positions were ones we initially lost money on.

 

■ Stay as big as you can invest

The question is what size gets you – except more fees for the manager. But it doesn’t necessarily make the investor more money. We don’t want to be bigger than we can invest. Fixed income funds should naturally be a little bit larger than, say, equity funds. You want to be big enough that you can see everything and small enough that you don’t kill yourself with size. So I think different sizes are right for different types of funds.

 

■ People need time to comprehend a changing environment

Maybe people don’t even realize that the environment has changed. Sometimes they don’t. Sometimes it takes weeks or months.

 

■ Markets can get illiquid very quickly

Our biggest mistake was not realizing how illiquid markets could get so quickly.

 

■ Adjusting to reality creates volatility

The market has to come to certain new realities and adjust valuations to those new realities, and while they’re adjusting to those new realities, there will be volatility.

 

■ If you are afraid of losing money, you will not make money

We’re value-oriented and performance-based like a lot of funds. But I think what differentiates us is that we’re not afraid of the downside of different situations when we’ve done the analysis. Some other people are very afraid of losing money, which keeps them from making money.

 

■ Regarding quantitative easing

If the FED does quantitative easing for the next five years that’s not good.

 

■ Regarding Gold and Silver

Those type of financial asset type metals, they reflect in some respect inflation but they also reflect a lot interest rates.

 

■ Regarding the 1987 stock market crash

Going into the crash I had set up my entire portfolio as just short – I had no long positions. I made a fortune during and after the crash. It was very cool.

 

 

■ David Tepper (Hedge Fund Manager)

Forex-Investors.com (c)

 

 

TWITTER:	» @DavidTepper5
BOOKS:	» David Tepper on Google Books