Hi

saga364 · #11 11th December 2006, 09:25 PM

I guess this is the first time we are actually having a discussion without anyone fuming about anything ...

Why cant we have more of these?

Regards,
http://pseudosocial.blogspot.com

P.S.:CV .. can I have your email address please ?

CreditViolet · #12 11th December 2006, 11:02 PM

Quote:

Originally Posted by saga364

I guess this is the first time we are actually having a discussion without anyone fuming about anything ...

Why cant we have more of these?

Regards,
http://pseudosocial.blogspot.com

P.S.:CV .. can I have your email address please ?

lol...that reminds me of Schopenhauer and his book Art of Controversy, a must read for debaters

Saga, my email id is jasinstoic [@] yahoo.co.in

Rgds
CV

Buffetfan · #13 12th December 2006, 01:56 AM

This is what you said

Quote:

Sorry, i do not agree with that at all....may be if investing is your pasttime, where it doesn't matter to ur profit/loss, and u have continuous source of money coming in, you may look for significant downside (god only knows why anyone will do that), but otherwise its risk/reward ratio. only if u have a positive expectancy than u may have the chance to win over the long term. even buffet buys only at a level where the mkt has thrashed the stock...and since he follows graham and fisher, his value buys and margin of safety are very important.

this is what I said

Quote:

]"In my view, the exposure that one takes in any investment should be significant enough to make a difference either way. ie..if the investment goes down, it should the big enough to make some difference in your economic condition..and if it goes up..it should be big enough to give your personal balance sheet a significant upside."

I must hasten to add that the quote above, while part of my investment philosophy..does not cover it completely... Put simply...This does not mean that if you put all logic to rest...and just invest a significant amount..you will be rich..

what it means is that in order for your invesments to work for you, you must apply your funnel of logic... (In my case generally Value investing and Graham/Buffet principles) and then make sure that since you have spent enough time applying the funnel (At least I do... I do not make more than a handful of investments in a year) make sure that you reap the full benefit by making an investment whose changes will produce a meaningful change in your personal balance sheet. Investing a significant amount also ensures 2 things

a. You remain focussed and get time to develop depth in certain areas. You only invest in stuff that you understand.

b. The general process of iteration that goes on in any mind, while comitting a significant sum (again..the term is up for grabs...but to me significant sum does not mean that you sell off your house and put the money in the market...on the other hand, if you are investing 0.5% of your net worth..that is not significant to me by any standards) ensures that you "sleep over" the decision and follow an "aim" "aim" "aim" ...."shoot" philosophy rather than a "shoot" "shoot"......"aim" philosophy... My experience over the past 4 years tells me that investments done after thorough research of the sector/company fundamentals carry a greater chance of success...even more than the "research reports" you get in the market.

Anyways...every person is unique and so are their investment philosophies. I do not mean to belittle any ideas here.

What works for one may not work for the other since the investment philosophy is an extension of yourself..for example..someone with little patience will find it very difficult to stick to some stocks that are "value investments" but have take years and not yet "discovered" by the market. In such a situation he may sell at a loss while someone with patience will "wait forever". On the other hand, someone with a long term view will loose out on making the most of short term spikes in his portfolio....while having less patience can be a virtue in such a scenario

I more interested in discussion of specific sectors and stock/commodity specific ideas and would like to back off a bit on discussions reg investment philosophies.
Investment philosophies, to me, is a subject which we must discuss in person / maybe over a beer...

beginner_av · #14 13th December 2006, 05:00 PM

dear buffetfan

sure we have different philosophies and no argument about that...there are successful traders/investors in all kinds of trading...but have u found out why most of these analysts who analyse sectors/stocks do not make enough money as successful investors/traders? many times from exp i have seen that u hold on to ur inv for long periods of time and market doesnt bother

jatayoo · #15 13th December 2006, 08:32 PM

Quote:

Originally Posted by Buffetfan

This is what you said

this is what I said

I must hasten to add that the quote above, while part of my investment philosophy..does not cover it completely... Put simply...This does not mean that if you put all logic to rest...and just invest a significant amount..you will be rich..

what it means is that in order for your invesments to work for you, you must apply your funnel of logic... (In my case generally Value investing and Graham/Buffet principles) and then make sure that since you have spent enough time applying the funnel (At least I do... I do not make more than a handful of investments in a year) make sure that you reap the full benefit by making an investment whose changes will produce a meaningful change in your personal balance sheet. Investing a significant amount also ensures 2 things

a. You remain focussed and get time to develop depth in certain areas. You only invest in stuff that you understand.

b. The general process of iteration that goes on in any mind, while comitting a significant sum (again..the term is up for grabs...but to me significant sum does not mean that you sell off your house and put the money in the market...on the other hand, if you are investing 0.5% of your net worth..that is not significant to me by any standards) ensures that you "sleep over" the decision and follow an "aim" "aim" "aim" ...."shoot" philosophy rather than a "shoot" "shoot"......"aim" philosophy... My experience over the past 4 years tells me that investments done after thorough research of the sector/company fundamentals carry a greater chance of success...even more than the "research reports" you get in the market.

Anyways...every person is unique and so are their investment philosophies. I do not mean to belittle any ideas here.

What works for one may not work for the other since the investment philosophy is an extension of yourself..for example..someone with little patience will find it very difficult to stick to some stocks that are "value investments" but have take years and not yet "discovered" by the market. In such a situation he may sell at a loss while someone with patience will "wait forever". On the other hand, someone with a long term view will loose out on making the most of short term spikes in his portfolio....while having less patience can be a virtue in such a scenario

I more interested in discussion of specific sectors and stock/commodity specific ideas and would like to back off a bit on discussions reg investment philosophies.
Investment philosophies, to me, is a subject which we must discuss in person / maybe over a beer...

I would add my philosophy in the following words:--
"DONT DILUTE YOUR RISK UNTILL IT BECOMES DOUBLE- TONED MILK"