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


To: petal who wrote (75895)7/28/2024 11:20:53 AM
From: Paul Senior1 Recommendation

Recommended By
petal

  Respond to of 78520
 
"...the one that I believed in the most usually perform the worst"

I've found that to be true too sometimes. Moreso here: If I pick say fifteen or more new stocks in a year, the ones I've believed in the most have never seemed to be the best performers either by percentage or dollar. (Usually the one's I've believed in most I have been weighted more heavily.)

The stocks that turned out best (percent gain) for me have more than often been a surprise.



To: petal who wrote (75895)7/28/2024 12:10:34 PM
From: bruwin  Respond to of 78520
 
I would say that it's not so much about Investor's "Personality" but rather about the CRITERIA that one uses to determine a stock to purchase that will better ensure a lucrative longer term investment.

That is what Warren Buffett's Criteria is largely all about in his search for companies that have Durable Competitive Advantage (DCA). Needless to say, DCA companies are not that common. But the Target Percentages that Buffett sets can be reduced slightly such that one can still uncover companies that will very likely be performing well as a business and should therefore be attractive to Investors.

If a company meets or exceeds All, or the Majority, of his Criteria, which are freely available, then it's most likely that it will be making an above average Bottom Line Profit seeing as its Top Line Revenue won't be adversely reduced by excessive COS (or COR), SG&A, R&D, Debt Expense, etc.

Of course, there may be those stock market players who have shorter term "profit making horizons" and who are not in it for the longer term investment. They may be those who are watching the ongoing fall in a stock's price anticipating that it must, surely, hit a bottom and then begin rising.
And if they can just "jump in" before that happens then they can make "a killing"..... in those cases the question could be asked, "what is going to make that company's stock price rise as a result of investors now interrogating the Fundamentals of that company and are those Fundamentals going to reflect a well performing business ?"