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Behavioral Finance:
What Good Is It, Anyway?
http://invest-mutual.blogspot.sg/2015/10...is-it.html
Like it or don't, we have to know it.
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.
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02-05-2016, 09:38 AM
(This post was last modified: 02-05-2016, 09:41 AM by specuvestor.)
Welcome back Temperament! how have u been?
Interesting oxymoron tweets there. Personally i think behavioural finance is the right model. I mean we look around and we still dogmatically believe the market is perfect clockwork? People love to heuristically collapse complex systems to simple solutions described by statistics, even if irrelevant
http://www.jasonzweig.com/behavioral-fin...it-anyway/
https://en.m.wikipedia.org/wiki/Behavioral_economics
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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- specuvestor
Welcome back Temperament! how have u been?
Interesting oxymoron tweets there. Personally i think behavioural finance is the right model. I mean we look around and we still dogmatically believe the market is perfect clockwork? People love to heuristically collapse complex systems to simple solutions described by statistics, even if irrelevant
http://www.jasonzweig.com/behavioral-fin...it-anyway/
https://en.m.wikipedia.org/wiki/Behavioral_economics
Ha! Ha!
i am fine.
Thank you very much.
Can still kicking cans down the road and checking the tires.
Amen.
And who hasn't been influenced by Oxymoron?
It's not less "mind boggling" then "behavioural finance", to me
Here are some examples:-
- "absent presence"
(Astrophil and Stella by Sir Philip Sidney)
- alone together
- awful good
- "beggarly riches"
(Devotions Upon Emergent Occasions by John Donne)
- bitter sweet
- "brisk vacancy"
("Self Portrait in a Convex Mirror" by John Ashbery)
- cheerful pessimist
- civil war
- clearly misunderstood
- "comfortable misery"
(One Door Away From Heaven by Dean Koontz)
- conspicuous absence
- cool passion
- crash landing
- cruel kindness
- "darkness visible"
(Paradise Lost by John Milton)
- deafening silence
- deceptively honest
- definite maybe
- deliberate speed
- devout atheist
- dull roar
- eloquent silence
- even odds
- exact estimate
- extinct life
- "falsely true"
(Lancelot and Elaine by Lord Tennyson)
- festive tranquility
- found missing
- freezer burn
- friendly takeover
- genuine imitation
- good grief
- growing smaller
- guest host
- historical present
- humane slaughter
- icy hot
- idiot savant
- ill health
- impossible solution
- intense apathy
- joyful sadness
- jumbo shrimp
- larger half
- "lascivious grace"
(Sonnet 40 by William Shakespeare)
- lead balloon
- "liquid marble"
(Poetaster by Ben Jonson)
- living dead
- living end
- living sacrifices
- loosely sealed
- loud whisper
- loyal opposition
- magic realism
- "melancholy merriment"
(Don Juan by Lord Byron)
- militant pacifist
- minor miracle
- negative growth
- negative income
- old news
- one-man band
- only choice
- openly deceptive
- open secret
- original copy
- overbearingly modest
- paper tablecloth
- paper towel
- peaceful conquest
- plastic glasses
- plastic silverware
- poor health
- pretty ugly
- properly ridiculous
- random order
- recorded live
- resident alien
- sad smile
- same difference
- "scalding coolness"
(For Whom the Bell Tolls by Ernest Hemingway)
- seriously funny
- shrewd dumbness
- silent scream
- small crowd
- soft rock
- "The Sound of Silence"
(song by Paul Simon)
- static flow
- steel wool
- student teacher
- "sweet sorrow"
(Romeo and Juliet by William Shakespeare)
- terribly good
- theoretical experience
- "transparent night"
("When Lilacs Last in the Door-yard Bloom’d" by Walt Whitman)
- true fiction
- True Lies
(movie directed by James Cameron)
- unbiased opinion
- unconscious awareness
- upward fall
- wise fool
- working vacation
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.
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I thought I might come up with an 'oxymoron' list for value investing. Some of us don't fall for it, but most of us do (fall for this BS). VBs, feel free to build up the list:
(1) underpriced growth stocks
(2) buying defensive stocks for capital preservation in a crisis
(3) high dividend yield plays for income
(4) high dividend growth stocks
(5) independent director
(6) Dual role as exchange operator and regulator
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(02-05-2016, 09:38 AM)specuvestor Wrote: Welcome back Temperament! how have u been?
Interesting oxymoron tweets there. Personally i think behavioural finance is the right model. I mean we look around and we still dogmatically believe the market is perfect clockwork? People love to heuristically collapse complex systems to simple solutions described by statistics, even if irrelevant
Our problem is that we believe the market is perfect clockwork, but our actions don't. Most of us get less into trouble, if we act as though the market is perfect clockwork yet believe it isn't (ie. respecting market efficiency with discipline and skepticism, but yet ready to exploit its inefficiencies when time presents itself)
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(03-05-2016, 09:09 AM)weijian Wrote: I thought I might come up with an 'oxymoron' list for value investing. Some of us don't fall for it, but most of us do (fall for this BS). VBs, feel free to build up the list:
(1) underpriced growth stocks
(2) buying defensive stocks for capital preservation in a crisis
(3) high dividend yield plays for income
(4) high dividend growth stocks
(5) independent director
(6) Dual role as exchange operator and regulator
(7) Alternative Investment for retail investors
(8) Audited by Big Fours
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(03-05-2016, 09:39 AM)yeokiwi Wrote: (03-05-2016, 09:09 AM)weijian Wrote: I thought I might come up with an 'oxymoron' list for value investing. Some of us don't fall for it, but most of us do (fall for this BS). VBs, feel free to build up the list:
(1) underpriced growth stocks
(2) buying defensive stocks for capital preservation in a crisis
(3) high dividend yield plays for income
(4) high dividend growth stocks
(5) independent director
(6) Dual role as exchange operator and regulator
(7) Alternative Investment for retail investors
(8) Audited by Big Fours
(9) independent valuer
(10) structured products for protection
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(03-05-2016, 11:38 AM)swakoo Wrote: (03-05-2016, 09:39 AM)yeokiwi Wrote: (03-05-2016, 09:09 AM)weijian Wrote: I thought I might come up with an 'oxymoron' list for value investing. Some of us don't fall for it, but most of us do (fall for this BS). VBs, feel free to build up the list:
(1) underpriced growth stocks
(2) buying defensive stocks for capital preservation in a crisis
(3) high dividend yield plays for income
(4) high dividend growth stocks
(5) independent director
(6) Dual role as exchange operator and regulator
(7) Alternative Investment for retail investors
(8) Audited by Big Fours
(9) independent valuer
(10) structured products for protection
(11) your principal is guarantee 100%.....when (small print) A & B & C........coinside. (This i am most wary of, i will run as fast as possible from it)
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.
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