Benjamin Graham and Security Analysis: A Reminiscence by Walter Schloss

[arthur]

In light of the fluctuating random noise of the stock markets and unknown way forward in a world with QE tapering, I present this short article for your reading leisure.

Not commonly found but hopefully value investors alike would love it.

Cheers.


  0471244724.pdf (Size: 23.3 KB / Downloads: 115)

[ichew]

thanks.
i like the part that says becos ben had been thru Depression, he likes to invest in things that protect him on the dwn-side.

often, investors & speculators alike, can only appreciate this after witnessing a big drop in their capital

[Temperament]

Yes it's the truth. But you have to experience it to know that it's really the truth.

"Seek to remove rather than to add - ”For antifragility is the combination aggressiveness plus paranoia – clip your downside, protect yourself from extreme harm, and let the upside, the positive Black Swans, take care of itself. We saw Seneca’s asymmetry: more upside than downside can come simply from the reduction of extreme downside rather than improving things in the middle.”

So always remember, if you can escape the Bear's trap is more important than riding with the Bull.

[gutman]

Thanks for the article, arthur. Short but good read.

Quote
" The ability to think clearly in the investment field without the emotions that are attached to it, is not an easy undertaking. Fear and greed tend to affect one’s judgment. Because Ben was not really very aggressive about making money, he was less affected by these emotions than were many others. "
Unquote

I think this is one of the most difficult thing to put into practice. Despite preaching this myself, I do tend to fall into this emotional trap following the roller coaster in the stock prices. I do try very hard to appear cool and take things in stride, but inside, the heart beat follows the volatility. We all know : Buy when the market falls and when everyone is selling, and sell when the market rises and everyone is buying. How often to we get caught doing the opposite, repeatedly.

[Musicwhiz]

The value investor's unique focus is on limiting and protecting his downside rather than chasing his upside. It is this mindset which sets him apart from other investors.

[Temperament]

The value investor's unique focus is on limiting and protecting his downside rather than chasing his upside. It is this mindset which sets him apart from other investors.

Well put! It's the gist of investing to me. In simplicity, where everyone can understand the classic saying:- "Buy Low, Sell High. In practice, how many of us can achieve it? Not too many. At least, all of us can not do it all of the time.