• Under 5% of all assets are run under value investors, a real minority in the investment world.
• The stock market is created for the other 95% of people, that is where your opportunity and challenge is..
• Biggest challenge: understand whether you are the 5% or the 95%
• It is tempting to do what the other 95% of people do. Emotionally very difficult to be in the 5%, but value investors typically have better returns. The money is really for traders and they tend to amass more assets.
• 5% have a spectacular return, but 95% of money probably always resides to somewhere else.
• Understand who you are. You will be tested. You will have to ask yourself whether you are or aren’t a value investor.
• If you are a value investor, you are probably genetically mutated and comfortable being in the minority. This is unnatural to human beings. You have to be comfortable being by yourself. You have to adopt the idea that you are right because your reason and evidence, not because others agree with you.
• You will probably spend most of your time being an academic researcher rather than a professional. You are a researcher or journalist, with insatiable curiosity. You are trying to figure out how everything works.
The more you know, the better you are as an investor.
• Politics, science, technology, literature, poetry, everything can affect businesses and help you.
• Occasionally you can find insights that will give you tremendous insights that other people don’t have.
• Then you find if the business is cheap. Is the management good? What else? Why is the opportunity there?
To summarize value investing not natural habit, most often you will alone/in minority, so your rational thinking is only the only friend in the process.
To fight and succeed against the majority you need to have edge that comes from patience , patience and patience and independent rational thinking and virocious reading.
• The stock market is created for the other 95% of people, that is where your opportunity and challenge is..
• Biggest challenge: understand whether you are the 5% or the 95%
• It is tempting to do what the other 95% of people do. Emotionally very difficult to be in the 5%, but value investors typically have better returns. The money is really for traders and they tend to amass more assets.
• 5% have a spectacular return, but 95% of money probably always resides to somewhere else.
• Understand who you are. You will be tested. You will have to ask yourself whether you are or aren’t a value investor.
• If you are a value investor, you are probably genetically mutated and comfortable being in the minority. This is unnatural to human beings. You have to be comfortable being by yourself. You have to adopt the idea that you are right because your reason and evidence, not because others agree with you.
• You will probably spend most of your time being an academic researcher rather than a professional. You are a researcher or journalist, with insatiable curiosity. You are trying to figure out how everything works.
The more you know, the better you are as an investor.
• Politics, science, technology, literature, poetry, everything can affect businesses and help you.
• Occasionally you can find insights that will give you tremendous insights that other people don’t have.
• Then you find if the business is cheap. Is the management good? What else? Why is the opportunity there?
To summarize value investing not natural habit, most often you will alone/in minority, so your rational thinking is only the only friend in the process.
To fight and succeed against the majority you need to have edge that comes from patience , patience and patience and independent rational thinking and virocious reading.
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