01-04-2013, 10:00 PM
(01-04-2013, 07:37 PM)lonewolf Wrote: Personally I find some of the condescending comments by 'value investors' increasing tiresome.
Sure in a rising market, some of the winners may perhaps be dismissed as being 'lucky' and having bought at the 'correct' time.
But I would like to say that 'value investing' is not the 'be all that end all' in investing. And I also like to suggest that some of the winners in the stock picks by 'value investors' is also down to timing and yes - luck.
Let me ask you guys a question: Have you ever come across a company that you think is a value proposition but for some unfathomable reasons, it seems to be persistently undervalued by Mr. Market? Why? You can keep on beating the drum and say that this company has a fantastic moat, good fundamentals and sustainable earnings, but if no one is listening or paying attention, does it matter if you are a one-member cheer-leading squad? Of cos not.
So I won't dismiss 'traders' so much; just like I always feel that the word 'investors' is probably over-stated and over-rated.
I will readily admit I sometimes do pass remarks which are rather harsh and will therefore try to temper them in future. As a Moderator I also have to moderate my own remarks! Haha.


You made a very valid point about value investing - luck does play a part too for value to be realized, or else a catalyst will take place to ensure value is crystallized.
That said, I think the primary aim of value investing is to ensure an adequate return, and dividends do provide that return even as we wait for value to be crystallized. Margin of safety will ensure capital preservation and the upside, as they say, should take care of itself.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/