Posted by feimah > 2016-10-21 09:07 | Report Abuse

Hi Ricky,
Pls share the books title that inspire you that you mention in your article.

Posted by fung9815 > 2016-10-21 09:50 | Report Abuse

Always love your view Ricky, I don't see many philosophical investors here like you. Pls write more :)

Posted by kongxkong > 2016-10-21 10:30 | Report Abuse

good article. thanks for the writeup

Posted by makcheeming > 2016-10-21 10:54 | Report Abuse

Good.

Posted by probability > 2016-10-21 11:03 | Report Abuse

Imagine yourself in a water Polo Pool. And you are standing right beside the goal post measuring the level of water relative to a fixed horizontal line connecting the two poles..when the water is calm - lets designate the level as zero.

When there's disturbance in the water...it creates waves..every wave created has positive & negative amplitude moving in a direction...at times its a positive or negative water level relative to the horizontal line depending on (1) the timing you are measuring the approaching waves.

the sum of the sinusoidal wave amplitude is always zero...this is what we call zero sum game.

Now...it is not totally a zero sum game...if water is continuously fed to the pool...and the level of water in the pool is rising..even if stays calm without any disturbance.

GDP = rise in the level of water in the Polo Pool.

So..if you are to experience a level rise higher than the GDP rate....you need to be in either the right (1) time or (2) position to experience the level rise above zero...

all these 'waves' are basically 'informations'...it could be the rise in earnings, fantastic qtrly results, erratic emotions of the investors, TA, some good news in etc...name it whatever you want.... but all these are just waves...whats important is the timing and position...not which wave that matters.


When we say timing & position...we are talking about your "competence relative to others"...its not about your strategy (i.e which type of wave)....that is all that matters...so its really meaningless to say that there is a type of wave which can give you an assured good return.

they are just a sinusoidal wave of zero net amplitude.

Now...only you can know about your competence relative to others in the wave of your expertise...no one else can teach you that.

Posted by probability > 2016-10-21 11:44 | Report Abuse

just to give more analogy - insights...

there are many type of waves....high amplitude with low propagation speed...(perhaps value investing falls under this)...some with small amplitudes at high speed...

you can assume different regions of the pool has different fluid & different viscosity to imagine that..

some waves appears like a big splash after a fat person jumps in & big vacuum after someone jumps out...