Has value investing changed you?

(22-01-2014, 04:48 PM)arriyana Wrote: I was an active trader for about 4 years and made a decent amount of profit. But every day, I sleep with great worry and consistenly checking the share prices because of my trades. Because there are no rationale for a trade, merely a gut feel or a technical trend that could go either way, I was always on my toes.

Since I moved over to value investing, it had helped to reduce the fear by a great deal because I know I have a reason for investing in a particular share with a margin of safety. (Recommend reading Benjamin Graham Intelligent Investor. It's a great book). I function much better daily with value investing.

So which method yields higher returns for you over say a period of 4 years? Active trading or value investing?

Some forummers have previously suggested that value investing appeal to some naturally but not others. I tend to agree and therefore think it will not change one's personality overwhelmingly. In my social circle, I know of many who will never accept value investing as it is a fundamental clash of personality.

(23-01-2014, 10:51 AM)viruskbs Wrote: My story about finding value in life.

My 7 year old daughter started demanding an iphone for her use.
So we discussed with her to find out why she needed an iphone.
it turns out that she needs to listen to songs when we not a home & dont want to dependent on us. she wanted something which is portable & we did not want her to use headphones.
so initially we thought of buying a portable stereo but the good ones very costly & the cheap ones could not really use the thumb drive.

Our search ended in Mustafa with a $19 portable speaker which a built in MP3 player which can play from a microSD card. & it was pink in color so my daughter adores it.

Finding Value, yes its worth the effort

Yes!
We will usually regret buying something on the spot without comparing with similar but difference of it's usefulness to us. Even though we can afford it. The more time you do your "homework", the better is the quality of the purchase in term of usefulness and value, usually.

Is it any much difference in stocks investment?

Some great Guru had said, "You should check or research which stock to buy as much as when you were buying a refrigerator". - The bare minimum of homework, i suppose.

(23-01-2014, 12:58 PM)fat al Wrote: Some forummers have previously suggested that value investing appeal to some naturally but not others. I tend to agree and therefore think it will not change one's personality overwhelmingly. In my social circle, I know of many who will never accept value investing as it is a fundamental clash of personality.

Yes. Some friends 40s still got the 'get rich quick' hiong mentality.
Some still kan Cheong spiders, totally not suitable for investing at all.

(22-01-2014, 08:00 PM)CityFarmer Wrote: Indeed, value investment has made a difference on buddies' life, including mine.

The VB forum helps to promote the value investment. Thank you to cyclone, and those founding members.

Although I think value investment did not change my personality, I do agree with you on VB forum.

Many thanks to the founder, moderators and contributers (especially the old timers for the historical threads). Despite having read Graham's work years ago, my investment style had been haphazard. After visiting VB, it rekindled my interest in value investing, got me into a 2-month reading marathon of investing books and forced me to restructure a struggling portfolio.

I am still the same "cheapskate" as I was, but perhaps slightly more efficient and effective now.

(23-01-2014, 02:08 PM)opmi Wrote:

(23-01-2014, 12:58 PM)fat al Wrote: Some forummers have previously suggested that value investing appeal to some naturally but not others. I tend to agree and therefore think it will not change one's personality overwhelmingly. In my social circle, I know of many who will never accept value investing as it is a fundamental clash of personality.

Yes. Some friends 40s still got the 'get rich quick' hiong mentality.
Some still kan Cheong spiders, totally not suitable for investing at all.

Some find value investing too boring, looking at under-covered, unpopular securities. Hardly good conversation piece in social settings.

(23-01-2014, 03:20 PM)fat al Wrote:

(23-01-2014, 02:08 PM)opmi Wrote:

(23-01-2014, 12:58 PM)fat al Wrote: Some forummers have previously suggested that value investing appeal to some naturally but not others. I tend to agree and therefore think it will not change one's personality overwhelmingly. In my social circle, I know of many who will never accept value investing as it is a fundamental clash of personality.

Yes. Some friends 40s still got the 'get rich quick' hiong mentality.
Some still kan Cheong spiders, totally not suitable for investing at all.

Some find value investing too boring, looking at under-covered, unpopular securities. Hardly good conversation piece in social settings.

I totally agree. it is boring to say the least. But i am Ok with boring if i get more money. I play games on my phone for excitement & thrills. same affect as forex or intraday trading.

yup. Sometimes when I talk to friends, all eyes big big when hear about investing. But when telling them that you need to do alot of background research and study, all roll eyes.
I think somehow, people relate equities to big money, bull run, excitement, rush... but when it is not what they expect, they think you must be doing something wrong.

Definitely changed me for life. I almost don't buy anything these days other than necessities because I find almost everything in the world to be overpriced or poor quality. If I really want to buy certain stuffs that are reflecting its real value then I have to look really, really hard. That consumes too much of my time and energy for finding bargain stocks, therefore I don't really buy any wants now. Haha, but sometimes, I mean rarely, I just go irrational and splurge on something ridiculously not value driven. Like the super overpriced Apple iPhone 5s product(red) leather case. After which, I found out Apple makes almost 20% of their revenue just from selling accessories!! Seriously that is way more than the money they make from iTunes (10%), which I thought was very big. Now I feel very stupid, again, you have to be irrational sometimes anyways.

Well at least some of that money has gone to Africa for charity...that might soothe my rationalism.

I am not immune to spur of the moment buys as well, just that when looking at things, the value mindset sets in and makes you think harder than norm.
I do splurge at times but sometimes, I cannot believe that I did it...lol.

Being more careful with money allows me to sift out items that appeal temporarily, to buy things that may interest me longer, I think.