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23-04-2018, 03:23 PM
Inside the mind of a value investing legend: Walter Schloss
By: Oh Aaron
20/04/18, 09:59 am
I believe there are two key elements that form the cornerstone of his philosophy. These are the building blocks upon which the investment structure rests upon. The first principle is patience. Patience is a virtue, so they say. Walter Schloss strongly believed in the importance of patience. He once said, “When you buy a depressed company, it’s not going to go up right after you buy it, believe me. It’ll go down. Therefore, you have to wait a while for that thing to go around.”
The second element is awareness. Schloss knew his strengths, weaknesses and limitations. “I always held 50 to 100 stocks at any given time because it would have been very stressful if one particular stock had turned against me.
“Psychologically, I am just built differently than Warren [Buffett]. I see that there are many people trying to be like Warren, but they should take note that he is not only a good analyst; he is also a good judge of people and businesses. I know my limitations, so I’d rather invest in the way I am most comfortable with.”
This awareness led him to diversify his portfolio. Diversification helped him avoid the emotional pitfalls that most investors face. It also helped reduce unsystematic risk in the portfolio.
More details in https://www.theedgesingapore.com/native-...er-schloss
By: Oh Aaron
20/04/18, 09:59 am
I believe there are two key elements that form the cornerstone of his philosophy. These are the building blocks upon which the investment structure rests upon. The first principle is patience. Patience is a virtue, so they say. Walter Schloss strongly believed in the importance of patience. He once said, “When you buy a depressed company, it’s not going to go up right after you buy it, believe me. It’ll go down. Therefore, you have to wait a while for that thing to go around.”
The second element is awareness. Schloss knew his strengths, weaknesses and limitations. “I always held 50 to 100 stocks at any given time because it would have been very stressful if one particular stock had turned against me.
“Psychologically, I am just built differently than Warren [Buffett]. I see that there are many people trying to be like Warren, but they should take note that he is not only a good analyst; he is also a good judge of people and businesses. I know my limitations, so I’d rather invest in the way I am most comfortable with.”
This awareness led him to diversify his portfolio. Diversification helped him avoid the emotional pitfalls that most investors face. It also helped reduce unsystematic risk in the portfolio.
More details in https://www.theedgesingapore.com/native-...er-schloss
Specuvestor: Asset - Business - Structure.