I don't understand what you are saying. Some of what I read makes no practical sense to me.
My whole investment approach is to find and then utilize what works for the common investor -- or what I believe works for the average guy.
To say "Essentially, value investors should take advantage of opportunities created by volatility in instruments across asset classes which drive them to ridiculous levels, be those invesments in real estate, call and put options, gold, stocks, or bonds. " -- Sure. But just who is going to do that? Who has the expertise or time?
You name some people -- is it these people themselves who are knowledgeable about all these asset classes and have time and resources to do seek out such good opportunities, or is it done by specialists or others in their firms?
(Aside) I don't recall Philip Carret in his writings ever using or recommending LEAPS. Were they even around when he was investing? (Aside: investing.kuchita.com
"However, we should refrain from posting about ideas of "relative," rather than absolute, value, as the inclusion of these securities (though their examination may flex our fundamental analysis muscles) is not appropriate as they constitute speculations rather than investments."
Some people's speculations are other people's investments. And vice-versa. I look at Seth Klarman's holdings, and as I have posted many times, many stocks - if not most of them, didn't or don't seem to be absolute values or stocks with a discernible margin-of-safety. Maybe Klarman's unique - unique like Buffett may be unique, but in a different way. And so his methods can't be duplicated by an average investor or an average investing firm.
For me, I read Klarman, and what I get from it is that he can be a relative value investor. As he said in 2010, "one of the best ways to protect against a decline in purchasing power is to buy whatever is "out of favor, loathed and despised." So forget about gold or other trendy hedges. Instead, wait patiently for markets—European stocks, perhaps—to get so cheap that they turn most investors' stomachs. Then you can pounce " Maybe late, but I'm with him in owning now BP, which apparently is the biggest position in his fund. Finding what's "out of favor, loathed, and despised" seems to me to be achievable for the average Joe. (Ex.: maybe like stocks in the fertilizer sector.) |
