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

To: Paul Senior who wrote (61861)	4/8/2019 10:45:29 AM
From: Jurgis Bekepuris	1 Recommendation Recommended By geoffrey Wren Respond to of 78796

I think I know where he's coming from: - Is it worth spending your time on investing (especially if your portfolio is small)? No. You probably will get much higher ROI on your time if you spend it on your profession/education/etc. Mike Burry is an exception to that. - I think he (and most of us) is trying to find a silver bullet which allows for great returns while not buying passive indexes (that might be overvalued). I don't think such silver bullet exists, but presumably he thinks it does. - I think there are narratives (Buffett, optometrist, Mike Burry) that seem to point to such silver bullet and are therefore attractive to listen to. This also leads to appeal to riches (cf. appeal to authority) argument. Overall though these stories are not that simple to follow as they would seem from just reading them offhand. My opinion is that there are (very) few people who can outperform passive indexes (like SP500). Usually this requires a lot of work. It could be deep value approaches, special situation/arbitration approaches, buy good companies and hold long time approaches. None of them are simple. None of them work for everyone (or even for a huge majority of investors). It is OK to prefer one of these approaches for your own investing, but telling that one of them is easy and another one never works are both fallacies. FWIW.