Is pure Value Investing a gamble?

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Quote:One of the points that he said was that Value Investing is like a gamble, a speculation that a stock will revert back to it's intrinsic value. Nobody knows when, one can only buy a value stock and hope in some day it'll be recognized by the market.
Thinking through, this seems very logical.

If you put it in that way, almost everything in life that requires a decision with uncertain outcomes is a gamble.

The key here is what is the "odds" of winning.

Net asset can be greatly depreciated/written off , Business condition can change for worst, Management move on and so on... Investing decision requires to make a "calculated risk" where we can estimate the risk and outcome thus give us much higher odds of winning , Value Investing has been proven a winning and conservative method through time.

Other form of gamble, for instance, playing Blackjack in Casino (one of the best odds game available in Casino) with house edge of 0.5% to 2%) you will lose money in the long run.













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Messages In This Thread
Is pure Value Investing a gamble? - by yyt - 03-01-2011, 05:55 PM
RE: Is pure Value Investing a gamble? - by arthur - 03-01-2011, 09:17 PM
RE: Is pure Value Investing a gamble? - by yyt - 03-01-2011, 11:22 PM
RE: Is pure Value Investing a gamble? - by yyt - 04-01-2011, 06:09 PM
RE: Is pure Value Investing a gamble? - by SLC81 - 04-01-2011, 09:49 PM
RE: Is pure Value Investing a gamble? - by koh_52 - 06-01-2011, 08:06 AM
RE: Is pure Value Investing a gamble? - by koh_52 - 06-01-2011, 10:03 PM
RE: Is pure Value Investing a gamble? - by yyt - 10-01-2011, 03:14 PM
RE: Is pure Value Investing a gamble? - by Foxer - 11-01-2011, 11:05 AM
RE: Is pure Value Investing a gamble? - by Nick - 11-01-2011, 09:34 PM

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