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Originally Posted by RT Wolf  Ahoy all,
I'm a value investor, and that's pretty rare (as rare as finding someone totally committed to personal development, or trials biking). Anyone else here?
Basically, value investors look for dollars on the stock markets for fifty cents (or less). I look for dollars for at most, 70 cents.
Wikipedia, for the financially inclined: Value investing - Wikipedia, the free encyclopedia
Even if you're not a value investor, I highly recommend: The Little Book That Beats the Market by Joel Greenblatt. Site: Magic Formula Investing
Kinda Airy title, but Greenblatt's like that. Quick read, and awesome. |
I agree that value investing is the way to go. But I must confess that I do like the excitement that comes along with gambling. The majority of my portfolio have been bought using Graham's/Buffett's principles. They are all solid companies that usually have high profit margin or high product turnover, great historical prices, and have been bought at a time when their prices dipped without any good reason (ie. market fluctuation).
But roughly 20% of my portfolio is dedicated to speculation. I guess I'm just an adrenaline junkie (I also do amateur mma cage fighting every once in a while.), but I'm smarter than most other bozos (day traders) when I choose roll the dice. For example, it's surpising that not much people even bother to use "stop loss" on stock purchases. That and "limit orders" generally take all the emotion out of buying and selling. So far the bigest loss I have to date is only about 5%. But in general my portfolio has left the S&P 500 in the dust. And I've been investing since my dad opened my first trading account for me 1994, when I was only 15.