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02-04-2015, 02:36 PM
(This post was last modified: 02-04-2015, 02:39 PM by specuvestor.)
LOL I agree on seven of them and worst is indeed the "Buy Low Sell High" one. But in this age we can also "short low and cover lower"
But one thing that we should be aware of is "earnings miss estimate" Missing consensus is a big thing. Missing consensus AND market anticipation is an even bigger thing.
The other ones are "why you didn't buy/sell at xxx price?" With that I show them my profile pic
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
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(02-04-2015, 02:36 PM)specuvestor Wrote: LOL I agree on seven of them and worst is indeed the "Buy Low Sell High" one. But in this age we can also "short low and cover lower"
But one thing that we should be aware of is "earnings miss estimate" Missing consensus is a big thing. Missing consensus AND market anticipation is an even bigger thing.
The other ones are "why you didn't buy/sell at xxx price?" With that I show them my profile pic
One very cliche liner is "stock investment is very risky". Even relatives say that. Then they didnt realise crossing rd also risky cos accidents with car can b fatal.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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The most annoying one that comes up often usually with some smugness is "I only take calculated risks".
This is usually followed by deafening silence or a bullet list of generic pros and cons of an investment propostion when I requested for the calculations.
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02-04-2015, 04:26 PM
(This post was last modified: 02-04-2015, 04:28 PM by specuvestor.)
Others are of the genre: "I sold xxx at the top/ bought at the bottom". Usually I just smile but if I am on a bad mood I would say things like: so... what % of your NAV does it impact? These are what I termed cocktail talk.
Novice investors usually dont understand asset allocation. I would choose a 10% return 100% sure win investment over a 100% return 10% win investment anytime, even when the mathematical expected return is the same. I would sell home and leverage on the sure win
Alas these investments only happen on seminars or schemes
That's why investments are risk (not volatility) adjusted and asset allocation reflects that uncertainty and one's comfort level. The right sizing is more powerful than the stock price move because of the way human psyche works, and comfort is only when you understand the stock/ business/ asset.
Brokers also like to tell you the great stock they have told you past 3 months. But failed to mention the other 9 flopped ones or how they would asset allocate. Unfortunately my memory of such things are still rather active
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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My personal favorite is when people use quotes as a justification: i.e. bought share A on cheap valuations; throws in favorite quote: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
"Criticism is the fertilizer of learning." - Sir John Templeton
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Catching the falling knife.
You can count on the greed of man for the next recession to happen.
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Don't you guys think buying low selling high is extremely difficult? When is low, low enough and when is high, high enough?
Dont waste your time.
Buy high, and sell higher instead.
!@#!#$%!&%^%!!