Posts: 3,474
Threads: 95
Joined: Jul 2011
Reputation:
17
(12-04-2014, 04:17 PM)scottleey Wrote: Hi guys,
Just read a pretty instructive article given the past 5 years of good gains.
http://brooklyninvestor.blogspot.co.uk/2...rship.html
Pretty good in terms of thinking during bubbly periods and the kind of investments and capital commitment buffett made.
Mark CancellieriMarch 24, 2014 at 12:47 PM
QUOTE:_
{Buffett is no market timer. He looks at valuations. That much is obvious. He always gives his viewpoints of the *valuation* of securities and markets, and he never makes predictions about *when* the market will change. He doesn't have to, because if he is right about the valuation, then it will lead to a good investment return regardless of whether he gets the timing right. However, when the market gets really out of whack, it *appears* as if he is timing the market because severe over- or under-valuations are not a stable situation.}
As Buffett once wrote:
“We try to *price*, rather than *time*, purchases. In our view, it is folly to forego buying shares in an outstanding business whose long-term future is predictable, because of short-term worries about an economy or a stock market that we know to be unpredictable. Why scrap an informed decision because of an uninformed guess?
Unquote:-
Very interesting. i have found a new angle looking at "Market Timing". Which in a way is not Market Timing at all according to WB. Actually i think i have been practising this without realising it. Though nothing near the GREAT WB. There is really no end to learning.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Homepage
PR Newswire
