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

To: deeno who wrote (37464)	4/21/2010 12:52:19 PM
From: MCsweet	Respond to of 78774

"a competitive advantage to who?" To the other buyers of large cap stock (i.e., the market) "risk/ reward goes hand in hand. less coverage may mean more risk. The idea that you feel youve made out just means expected return versus the risk you took is ok. So who were you competing with?" Less coverage means more uncertainty (lack of information). I think investors are rewarded by taking uncertainty risk). Less coverage also tends to correlate with less trading liquidity, which is a risk. I feel I am amply rewarded by taking those risks, although being stuck in 2008 in some "roach motel" stocks, I do appreciate the risk more than I did. "If your expected return = the market, why not just own the market instead of "value equities"?" For largecap stocks, I prefer value to the general market, but sure I could just buy a value fund and it would probably do just well for that portion of my portfolio, except with investing myself I don't have to pay the management fees. "Good ideas are good ideas whether followed by 100 analysts or none. Analysts really cant compete with your time horizon. Think how much money youd make, even versus your high risk stuff, if 100 analyst disagreed with you and you were right?" Ahhh, but I have more good ideas in microcap stocks. There are more valuation discrepancies in those. That is the very point of mine that you are missing.