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

To: petal who wrote (71459)	10/28/2022 2:54:24 PM
From: Spekulatius	2 Recommendations Recommended By Lance Bredvold petal Respond to of 78618

Size does matter. Buffett in his early days bought stakes in micocaps where he could acquire a controlling stake often enough. With a controlling stake, he could control the outcome, replace management etc, when things did not go his way. Once he had a few hundred million in funds, this approach was not workable any more, because he simply could not put enough money in these microcaps to matter. Larger cigar but bets did no offer the same margin of safety (more competition). That's why he decided to go GARP. The other reason was that he started to run his operation under an insurance umbrella where concentrated bets into illiquid microcaps would probably cause problems with regulators.

To: petal who wrote (71459)	10/28/2022 4:57:07 PM
From: bruwin	1 Recommendation Recommended By petal Respond to of 78618

"Bruwin has his mind made up on this matter though! I know from previous discussions" Look, ..... how people want to spend their money on stocks, how they want to decide what stocks to buy, and how many stocks they want to buy, is their business .... it really makes no difference to me. BUT, at the end of the day, before someone decides on what the size of the stock market account must, or should, be, they FIRST, IMO, have to FIND those stocks that will give them the most likely chance of a good return on their investment. And a stock that is most likely to do that is one where it's business has been making an above average and ongoing Profit relative to its Total Revenue. In other words, the more of its Top Line Revenue that reaches the Bottom Line the better. And when that happens the items on the Income Statement will fall in line with that occurrence ..... and certain specific ratios will confirm and support that. And that, in turn, improves the state of its Balance Sheet and hence its Total Assets relative to its Total Liabilities. And that, generally speaking, will make a stock attractive to an investor ..... and when a stock becomes attractive to investors they want to buy it .... and as more and more investors want to buy it, so will the demand and hence the price of that stock go up ..... and ONE MAKES MONEY. So the way I see it, the "Business Performance/Profit-Making" of a company could be regarded as the "Horse", and the "Size of the Account" could be regarded as the "Cart" ......... so IMO I'd say "Don't put the "Cart" before the "Horse" "..... But at the end of the day that will be up to the individual to decide ......