Posted by Jay > 2018-01-29 01:17 | Report Abuse

it's sad to see that a young person who sounds brilliant yet shows such narrow mindedness. hate to see talent get wasted so some advice below, whether you understand and/or accept is up to you.

1. in life, attitude and interpersonal skills often are more important than academic brilliance, i.e. EQ>IQ. of course, best case is to have both

2. labeling others is dangerous especially when you don't know them well. this is also often an act of arrogance, thinking you can put complex personalities into categories

3. technical trading is not just about charts and indicators. good traders would know it's about market psychology. last I checked, psychology is still a globally accepted university subject (but I never think it's exact science, because humans just don't behave all the same). again judging something without spend time understanding it is reckless

4. all stocks will suffer in a crisis, just the extent of it. you may think that your stock picks will survive it but you forgot all your assessments were done based on pre-crisis assumptions. during real crisis, say blue chips like Nestle could also fall 80% because nobody can be really sure of when economy and consumption will rebound. and also partly because in crisis, unit trust and ETF investors will redeem their investments and fund managers will be forced to liquidate the holdings. so to think that fundamental picks will survive crisis is just naive

5. surviving a crisis cannot settle who is superior between fundamental and technical investor. so what if a trader sees signs of market peaking and sold all his shares early while you keep averaging down until almost bankrupt as the market tanked 50%? his process better than yours? traders > fundamental investor? every crisis there will be investors and trader who go bankrupt

6. investing is better practiced than preached. it's not all about the intelligent investor or fundamental value investing. one may argue that ultimately everything can be classified as high or low risk investing. then it's all about risk-adjusted returns. if others are taking slightly more risks yet get significantly higher returns than you, you are simply not as good as you think

7. The biggest flaw for fundamental value investing is assumptions. I am a fundamental investor and I love this great quote "investing is a probabilistic decision based on imperfect information on an uncertain future". that's why there will always be different views of what is the fair value of a company. so if you think the company is worth RM4.00 and today it's RM4.50, so you sell as you think it's overvalued and would revisit if it falls below RM4.00. I may think it's worth RM6.00 and so now I would label you as a trader who try to time the market, would that be fair?

8. Managing other people's money is totally different ball game and learning on the process is simply reckless and irresponsible. if you haven't been able to manage your own money well, then don't take others' money as you may discover one day you might lose more than just money. there's no set criterias to meet before you manage others' money but based on this article, maybe not yet

Posted by iamnew > 2018-01-29 09:20 | Report Abuse

Half truths about value investing. Sound like a typical young inexperience investor who just finish reading a few investment books.