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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (36876)	3/6/2010 7:23:00 PM
From: Charshay	Respond to of 78471

MD, I have seen a 10,000 hour interview and would agree with this concept though would state extreme hard work, determination and focus upon subject, will pay off in a certain time period depending on your learning curve. To say this individual was wiling to put all his eggs in one basket I am not sure about this being correct from my point of view, although the eggs were mostly put into the CD contracts that is true. If you take the subprime research that was performed this was quite incredible amount of detail that was absorbed and enacted on. The catalyst was pulled out that within 2 years on a certain group of mortgages rates would jump from 6-11%, CDS contracts have fixed amount costs in this case the first one was I believe $20,000 premium for Millions worth of insurance (without looking at the article not sure how many millions, but many) Catalyst: Non payment of certain class mortgages due to large coming increase in interest rates on very high value RE. Risk to Reward % very large Risk factors would have been (among others as always), non payment of insurance(eggs in one basket). I would like to hear his comment on the risk side. There is an element of Luck in investing. In football we have a saying for this "You've got to be good to be lucky"