Author Topic: I have given up value investing  (Read 12891 times)

Parsad

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Re: I have given up value investing
« Reply #50 on: January 18, 2019, 10:13:49 AM »
Spekulatius,

Please also see my post #8 in this topic which sheds some light on muscleman's new investment approach.
Yeah, I highly doubt that that's a good decision. Giving up on value investing sure, most people can't beat the market, and the sooner you realize you aren't one of them the better. But I think the conclusion of Muscleman that "value investing" doesn't work, but perhaps something else does, is 100% the wrong conclusion. If you can't handle value investing, arguable one of the easiest ways of active investing!, I doubt an alternative active approach is a wise step. Especially since all the point why his value investing doesn't work also apply at basically anything else. Some of them even at passive investing! If you can't psychologically handle the risk and the losses that are inherent to stocks it doesn't matter what your strategy is, your problem isn't going away.

Everyone should do what is best for them, but I fully agree with the above comment.  Cheers!
No man is a failure who has friends!


scorpioncapital

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Re: I have given up value investing
« Reply #51 on: January 18, 2019, 10:51:47 AM »
Dumb investing doesn't work. Sometimes value investing is dumb investing, so yes give that up. I guarantee you, value is not all about price. Cheap price maybe very not value and high price very much value. Growth is always part of value. The split by most pundits is ridiculous. So educate yourself. I guarantee you if you have to give up on value investing, as it is deeply understood, you're doing something wrong. So don't give up !

LC

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Re: I have given up value investing
« Reply #52 on: January 18, 2019, 11:05:38 AM »
Different strokes for different folks.

I'm with the posters who said 1) value investing has so many meanings, two "value" investors can be on both sides of a trade, and 2) "value" investing is just "investing"

So really, do whatever you think is best. Which is usually what we're all doing anyways.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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havingheart

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Re: I have given up value investing
« Reply #53 on: January 18, 2019, 11:57:32 AM »
Muscleman, kudos for the honesty/independence.  As long as you iterate/brutally evaluate yourself like you have done, I have no doubt that you'll succeed.  Exploring different methods will only help you to detach from the process I think and there are many tools one can pick to survive in an ecosystem.  See BNF/Takashi Kotegawa although supposedly his methods don't work anymore, but I doubt people could say with 100% what his methods truly were.

Although, I kind of feel that for ordinary mortals, the drive to hit it rich impedes investment results because it makes us emotional.  If you want to make serious money, I would look into starting a side business instead as the odds of starting a successful one > odds of beating the market consecutively by huge margins :P and having drive only helps you there.

If you want to impress people here though, you have to do it in the "value investing" way.  Of course people here are going to say value investing is the best way lol.  Do you go a tesla forum to ask if if there's a better car company than tesla?  Their cars do look pretty cool though.
« Last Edit: January 18, 2019, 12:03:23 PM by havingheart »

SHDL

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Re: I have given up value investing
« Reply #54 on: January 18, 2019, 12:12:52 PM »
BNF/Takashi Kotegawa

Well, what a surprise to see this name come up here.  If I were to associate a human face to the enigmatic Japanese stock market, his would be my pick.

havingheart

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Re: I have given up value investing
« Reply #55 on: January 18, 2019, 01:11:26 PM »
Not an endorsement either :P. Just another example of what works for some doesn’t work for others.

muscleman

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Re: I have given up value investing
« Reply #56 on: January 18, 2019, 04:30:08 PM »
Muscleman, kudos for the honesty/independence.  As long as you iterate/brutally evaluate yourself like you have done, I have no doubt that you'll succeed.  Exploring different methods will only help you to detach from the process I think and there are many tools one can pick to survive in an ecosystem.  See BNF/Takashi Kotegawa although supposedly his methods don't work anymore, but I doubt people could say with 100% what his methods truly were.

Although, I kind of feel that for ordinary mortals, the drive to hit it rich impedes investment results because it makes us emotional.  If you want to make serious money, I would look into starting a side business instead as the odds of starting a successful one > odds of beating the market consecutively by huge margins :P and having drive only helps you there.

If you want to impress people here though, you have to do it in the "value investing" way.  Of course people here are going to say value investing is the best way lol.  Do you go a tesla forum to ask if if there's a better car company than tesla?  Their cars do look pretty cool though.

I totally agree. I have spent 9 years on value investing and read over 100 books. I gave it a hard try and it wasn't for me.
After I switch the method, i no longer feel distressed and compelled to check the stock price every few minutes. That's why I made this post to alert people that there are more methods than value investing, and one can only have superior performance if he finds the method that suits him. Regardless of what method one picks, I believe one has to be open minded in order to succeed. I see a number of folks asserting adamantly value investing is the best, without even having in depth knowledge of other methods. I doubt any of these people are open minded. Being open minded is the first criteria before one can succeed in stocks. Good luck!

Cardboard

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Re: I have given up value investing
« Reply #57 on: January 18, 2019, 05:04:27 PM »
What is your new method?

Sorry if I make you repeat.

Cardboard

sshr

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Re: I have given up value investing
« Reply #58 on: January 18, 2019, 07:50:26 PM »
After I switch the method, i no longer feel distressed and compelled to check the stock price every few minutes.

Why were you checking stock prices every few minutes? Perhaps, that was the source of your distress?

frommi

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Re: I have given up value investing
« Reply #59 on: January 18, 2019, 10:33:48 PM »
I totally agree. I have spent 9 years on value investing and read over 100 books. I gave it a hard try and it wasn't for me.
After I switch the method, i no longer feel distressed and compelled to check the stock price every few minutes. That's why I made this post to alert people that there are more methods than value investing, and one can only have superior performance if he finds the method that suits him. Regardless of what method one picks, I believe one has to be open minded in order to succeed. I see a number of folks asserting adamantly value investing is the best, without even having in depth knowledge of other methods. I doubt any of these people are open minded. Being open minded is the first criteria before one can succeed in stocks. Good luck!

I am always curious to learn something new, can you point to resources that prove the validity of your approach? (luck vs. skill??) Or is it "just" a momentum approach? How do you find your stocks, how do you determine when to enter/exit?

Since value investing is such a broad concept ("pay less than something is worth") i can hardly see how that is not working for anyone. The hard part is figuring out what something is worth, and maybe you were just not that good at it because you probably looked in the wrong places and tried the hard stuff first. If you ever give value investing another try I would focus on NCAV and dividend growth stocks because they are the easiest to value.

Regardless, i am bored right now, so please give me something to read regarding your new approach. :)