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18-12-2020, 05:38 PM
(This post was last modified: 18-12-2020, 05:38 PM by dreamybear.)
A $10k investment becomes $3.8m, $50k - $19m.
It makes me wonder whether it is possible to develop competencies to spot such opportunities or are such things purely luck dependent like TOTO ?
As value investors, we look at valuation, studying the business prospects/industry, company, etc. On top of that, we may follow the company for years, and we may wait for years for the profit to increase and the corresponding valuation. A lifetime of value investing looking at cash flows, P/E, etc may not achieve the same kind of returns.
Perhaps one day, someone may be able to develop a methodology for a reasonable chance at spotting outliers.
It makes me wonder whether it is possible to develop competencies to spot such opportunities or are such things purely luck dependent like TOTO ?
As value investors, we look at valuation, studying the business prospects/industry, company, etc. On top of that, we may follow the company for years, and we may wait for years for the profit to increase and the corresponding valuation. A lifetime of value investing looking at cash flows, P/E, etc may not achieve the same kind of returns.
Perhaps one day, someone may be able to develop a methodology for a reasonable chance at spotting outliers.