199. The Mind of Value Investors
Photo taken from Walter Quek's Photo Album
Some say out of 10 persons investing in financial markets, 8 will lose money; some say 9. In my opinion, I say ten persons investing, ten will lose money.
In investment we need to learn some market emotion term, I called it, such as happily angry and frustrated hold.
Here we look into the mind of value investors:
Here are some useful stock picking rules from Investment guru Burton G. Malkiel:
1 Confine stock purchase to companies that appear able to sustain above average earning growth for at least five years.
2 Never pay more for a stock than can reasonably be justified by a firm foundation of value.
3 It helps to buy stocks with the kinds of stories of anticipated growth on which investors can build castles in the air. ie Required intellectual and psychological acuteness
4 Trade as little as possible.
Ride the winners and sell the losers.
Here is another guru, warren Buffett says:
"Wide diversification is only required when investors do not understand what they are doing."
"Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing."
"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well."
"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for ten years."
"The Stock Market is designed to transfer money from the Active to the Patient."
"Someone’s sitting in the shade today because someone planted a tree a long time ago."
"Only when the tide goes out do you discover who's been swimming naked" - Warren Buffett
My understanding of better investment strategy is by mastery of investment conditions, technical analysis, fundamental analysis, market emotion and individual personality make up.
Happy Investing , get insight from these gurus to improve our wisdom on financial investment
In investment we need to learn some market emotion term, I called it, such as happily angry and frustrated hold.
Here we look into the mind of value investors:
Here are some useful stock picking rules from Investment guru Burton G. Malkiel:
1 Confine stock purchase to companies that appear able to sustain above average earning growth for at least five years.
2 Never pay more for a stock than can reasonably be justified by a firm foundation of value.
3 It helps to buy stocks with the kinds of stories of anticipated growth on which investors can build castles in the air. ie Required intellectual and psychological acuteness
4 Trade as little as possible.
Ride the winners and sell the losers.
Here is another guru, warren Buffett says:
"Wide diversification is only required when investors do not understand what they are doing."
"Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing."
"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well."
"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for ten years."
"The Stock Market is designed to transfer money from the Active to the Patient."
"Someone’s sitting in the shade today because someone planted a tree a long time ago."
"Only when the tide goes out do you discover who's been swimming naked" - Warren Buffett
My understanding of better investment strategy is by mastery of investment conditions, technical analysis, fundamental analysis, market emotion and individual personality make up.
Happy Investing , get insight from these gurus to improve our wisdom on financial investment
