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

To: nikkei86 who wrote (41207)	1/27/2011 9:48:12 AM
From: Jurgis Bekepuris	2 Recommendations Read Replies (1) \| Respond to of 78609

This should be a calm discussion between market enthusiasts, not some nasty 'prove it' contest. Well, you started it as a "prove it" contest, so I'm not sure why you are surprised now. So let's see: you have some idea, you come to a thread and try to push it as the only way to significantly outperform the market, you cannot show any proof of it academically or from your own experience, and we still should all believe you. When people ask you at least for some suggestions that would support your claim, you turn around and tell them that you never said that you can provide such potential portfolio and that you have no time to research it. So it's all: "Hey guys, go do the work, find ten 10 baggers and you will be rich, now go" from your side. OK, is that pretty much correct? Aside: Let me apologize to Bruwin for comparing him to you. Bruwin at least did the work and provided a pretty interesting portfolio to support his position. If you're such a passionate ten-ten-bagger, you should go and learn from the best Subject 56822

To: nikkei86 who wrote (41207)	1/27/2011 2:34:20 PM
From: Dale Baker	Read Replies (1) \| Respond to of 78609

Portfolios are never purely philosophical unless they exist solely on a classroom blackboard. You will learn much more about in the next few decades, as most of us here already have. FWIW, without following your approach, I have walloped the indexes in the last decade in a way that your approach would suggest would only be possible with 10 stocks,not 60-80 as I usually carry. Doesn't compute in the real world based on the data I see.

To: nikkei86 who wrote (41207)	1/27/2011 3:57:05 PM
From: 16bit	1 Recommendation Respond to of 78609

"as you put more stocks in your portfolio, you don't stand to gain as much from your best ideas" I somewhat agree, but the problem is, you don't always know what your best ideas are. Many times, what I though were great ideas turned into toads. A few times I've come across some "no brainers" that really soared. How I wish all my "best ideas" really were my best ideas. Best to you.

To: nikkei86 who wrote (41207)	1/27/2011 10:01:32 PM
From: Spekulatius	2 Recommendations Read Replies (1) \| Respond to of 78609

Nikkei86 - when I was a college grad, my portfolio was smaller too, in terms of the position # and the $ (at that point it was DM) value too. I had maybe a handful positions, mostly to keep my commissions at a manageable level. Now my portfolio is somewhat larger and I don't particulary like the idea to loose a year worth of savings with a single bad decision. Commission matter less too, in relative terms, so I see no harm in diversifying. I could probably do with 15-20 position but my investment principle is to average down. Well sometimes I can, sometimes I don't because the stock goes up and I rarely average up. So I get stuck with stub position which I neither have a compelling reason to add too, nor I want to sell. So the 20 position swell into 30-40 positions. Beyond that level, I probably start to clean up and consolidate, especially in tax deferred accounts. As far as Buffet is concerned, he was not a pure Graham like value investor. He was more an activist or even control investor and he was concentrated, so that he could make sure he could influence the outcome in a substantial manner, or where he had superior knowledge (in some cases knowledge that would be considered insider knowledge nowadays). that was a very different approach than Graham/Dodd. the latter were basically buying a fairly diversified mix of stocks which appeared undervalued , without studying the individual companies all that much. Well that's just me - 10 position is a very low number, because I found that I have ideas in areas that are often correlated. This means that probably 30% of my position and funds are bet on a single idea or trend, so the diversification is not as great as it seems. I basically take some insurance out on company specific risk but overall market trends can still have a significant impact on portfolio performance.