Comments on: Have You Read Buffett? http://www.fwallstreet.com/article/73-have-you-read-buffett/ Value Investing Blog Mon, 16 May 2011 10:55:06 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Musicwhiz http://www.fwallstreet.com/article/73-have-you-read-buffett/#comment-498 Musicwhiz Sun, 14 Oct 2007 00:45:28 +0000 http://www.fwallstreet.com/article/73-have-you-read-buffett#comment-498 Hi there, I did do a blog post to express my personal views on my own value investing blog at http://sgmusicwhiz.blogspot.com on why value investing is not popular. Kindly check it out if you have time. Regards, Musicwhiz Hi there,

I did do a blog post to express my personal views on my own value investing blog at http://sgmusicwhiz.blogspot.com on why value investing is not popular. Kindly check it out if you have time.

Regards, Musicwhiz

]]> By: Sanjay Shetty http://www.fwallstreet.com/article/73-have-you-read-buffett/#comment-463 Sanjay Shetty Fri, 12 Oct 2007 01:52:46 +0000 http://www.fwallstreet.com/article/73-have-you-read-buffett#comment-463 I feel there are many reason why Value Investing isn't and won't be popular. Firstly it's very difficult for people to get the concept of buying a dollar for 50 cents, it's like teaching a person to whistle, most are able to do it easily but some just are not able to whistle. Somehow when it comes to the stock market people are not able to understand that it's actually buying into a company, not just pieces of paper. Moreover they don't understand or believe that just like in the supermarket, companies in the stock market are sometimes available at bargain prices. Second, Value investing involves numbers, now for those who are comfortable with numbers that's nice, (though not a huge advantage, all folks on wall street supposedly understand numbers ;-), however there are certain kinds of people, me included who find it a pain to go thru numbers in details, so I'm always finding shortcuts, like screeners which do the pain work, and reduce my workload, infact trying to write an excel based screener to run thru the S&P 500. Third, most people are essentially gamblers, looking for the quick buck, the next Google (Or Netscape of the last Internet Boomtime). Infact recently some close family member asked me the question, the Indian market is booming should I buy xyz company? and I said I don't have a clue about the company, but why are you looking at buying it, the reply was well my friend told me, and she keeps making money on the market. I asked, do you know what this company is about? and well, she obviously didn't know enough to make an investment decision, however I could see her enthusiasim bursting thru the seams she just wanted to get a piece of the action(the booming stock market). Just my 3 bits ;-) Regards, Sanjay Shetty I blog at http://indiainvestor.wordpress.com/ I feel there are many reason why Value Investing isn’t and won’t be popular.

Firstly it’s very difficult for people to get the concept of buying a dollar for 50 cents, it’s like teaching a person to whistle, most are able to do it easily but some just are not able to whistle. Somehow when it comes to the stock market people are not able to understand that it’s actually buying into a company, not just pieces of paper. Moreover they don’t understand or believe that just like in the supermarket, companies in the stock market are sometimes available at bargain prices.

Second, Value investing involves numbers, now for those who are comfortable with numbers that’s nice, (though not a huge advantage, all folks on wall street supposedly understand numbers ;-) , however there are certain kinds of people, me included who find it a pain to go thru numbers in details, so I’m always finding shortcuts, like screeners which do the pain work, and reduce my workload, infact trying to write an excel based screener to run thru the S&P 500.

Third, most people are essentially gamblers, looking for the quick buck, the next Google (Or Netscape of the last Internet Boomtime). Infact recently some close family member asked me the question, the Indian market is booming should I buy xyz company? and I said I don’t have a clue about the company, but why are you looking at buying it, the reply was well my friend told me, and she keeps making money on the market. I asked, do you know what this company is about? and well, she obviously didn’t know enough to make an investment decision, however I could see her enthusiasim bursting thru the seams she just wanted to get a piece of the action(the booming stock market).

Just my 3 bits ;-)

Regards,

Sanjay Shetty

I blog at http://indiainvestor.wordpress.com/

]]> By: Casey Mattson http://www.fwallstreet.com/article/73-have-you-read-buffett/#comment-458 Casey Mattson Thu, 11 Oct 2007 13:37:48 +0000 http://www.fwallstreet.com/article/73-have-you-read-buffett#comment-458 Great article. I think, if you have not already, read the "Mr. Market" analogy from Intelligent Investor on here too. Also as Mr. Pabrai says, the ability to naval gaze is of utmost importance to be a sucessful investor. Something to that affect anyway. I suspect that is why Buffett plays bridge. :) His mental distraction from stocks, otherwise his intellectual curiosity will get the best of him. Anyone, want to start a bridge club? j/k Casey Great article. I think, if you have not already, read the “Mr. Market” analogy from Intelligent Investor on here too.

Also as Mr. Pabrai says, the ability to naval gaze is of utmost importance to be a sucessful investor. Something to that affect anyway.

I suspect that is why Buffett plays bridge. :) His mental distraction from stocks, otherwise his intellectual curiosity will get the best of him.

Anyone, want to start a bridge club? j/k

Casey

]]> By: Nick http://www.fwallstreet.com/article/73-have-you-read-buffett/#comment-456 Nick Thu, 11 Oct 2007 07:33:00 +0000 http://www.fwallstreet.com/article/73-have-you-read-buffett#comment-456 I feel that the main reason for people not adapting a "value" approach to investing is because, for the most part, you have to suffer through pro-longed periods of drought and sub-par returns. Most people lack the intestinal fortitude that it takes to succeed in this arena. That's why you have to work on your character first, then make your bets. Hence the reason Joe keeps talking about the psychology of investing. Remember, you cannot spray paint rust. Your emotions will get the best of you if you haven't mastered them first. In other words, people lack the patience and the focus to do it successfully. So we probably will not see any trends toward value investing any time soon. Hooray for us!! I feel that the main reason for people not adapting a “value” approach to investing is because, for the most part, you have to suffer through pro-longed periods of drought and sub-par returns. Most people lack the intestinal fortitude that it takes to succeed in this arena. That’s why you have to work on your character first, then make your bets. Hence the reason Joe keeps talking about the psychology of investing. Remember, you cannot spray paint rust. Your emotions will get the best of you if you haven’t mastered them first.

In other words, people lack the patience and the focus to do it successfully. So we probably will not see any trends toward value investing any time soon. Hooray for us!!

]]> By: Allen http://www.fwallstreet.com/article/73-have-you-read-buffett/#comment-455 Allen Thu, 11 Oct 2007 07:07:10 +0000 http://www.fwallstreet.com/article/73-have-you-read-buffett#comment-455 As a new investor this is a great read. I actually have worried that everyone will start valuing stocks approriately, since it makes so much sense. I guess that seems pretty absurd, given that the "secret" has been out for so long. Interesting to me that Buffett seems to be defending value investing, or at least making sure people realize it isn't luck. Skeptics will be skeptics, but the money talks. But I'm sure he's realized that by now. As a new investor this is a great read. I actually have worried that everyone will start valuing stocks approriately, since it makes so much sense. I guess that seems pretty absurd, given that the “secret” has been out for so long.

Interesting to me that Buffett seems to be defending value investing, or at least making sure people realize it isn’t luck. Skeptics will be skeptics, but the money talks. But I’m sure he’s realized that by now.

]]>