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

To: Shane M who wrote (43534)	7/25/2011 12:04:37 AM
From: armi	Respond to of 78655

I'd argue that online 'simulators' don't give a true representation of one's skill. You NEED to put real money on the line no matter how much it is. The psychology changes everything. However I completely agree with everything else. You NEED to specialize and stay inside your specialization. If you don't know, ask someone that does know and learn until you understand it. I'll throw out that Citigroup killed a few people I know. They're still at a loss and it's because they invested outside of their circle of competence and decided to average down on it. Know your businesses VERY well. I use screens too although its better if you don't but I want to weed out the sharks when i'm looking for goldfishes.

To: Shane M who wrote (43534)	7/25/2011 2:17:41 PM
From: AnthonyD	Respond to of 78655

Hi ShaneM, Thank you for taking the time to share your experiences and advise with me. At present I am following the recommendations of others on the thread who have kindly shared their thoughts. I ordered a bunch of books and I am working my way through them as they arrive. I am starting to formulate filters for investment candidates. I am looking primarily at trying to identify companies with greater book value per share than the going share price. Then I try to identify and cull financially weak companies. Next, I try to determine if the industry of the company in question has any favorable factors or at least developing favorable factors. The story of Mr. Womack, and the concept of "Black Swan" events has set me thinking. Therefore, the current "season" of the investment, and probable positive events are filtering elements I consider. I have not fully understood the practical application of black swan events into the screening process yet. For now, I am reading books rather than 10Ks. I hope in the future I will be able to contribute to the thread in a meaningful way. Presently, I think it is wiser to "lurk", and listen. As an ancient Hindu text declared, "Through observation Indra became king of the the Gods." Anthony