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...