Value Investing with the Masters – by Kirk Kazanjian & Interview with America’s top Traders – by Jack D. Schwager
Value Investing with the Masters
Comprises twenty interviews with market beating fund managers. I found this book quite humdrum. A few underline worthy statements, though they come up in other books as well.
– 90% of gains in equities are made in 2% of the time duration, stay the course and keep plugging
– Stocks that fall down have to be rubber balls not eggs !
– Depreciation policy of British and Copenhagen airports writes them off at 100 vs 20 years, valuation measurement should vary, and airport after all is an airport !
– Stock picking is like farming, seeds (money) have to be sown, not all seeds grow, suitable climate (sentiments) matters, seasons change but not as regularly as in farming and can last years.
– Graham later in his interview with congress replied in response to valuation of company as, future earnings of the company and to an extent current assets. Fan boys who keep pressing for current assets metric miss out on opportunities. Same way Buffett aficionados presume its sinful to invest in technology, just because technology is not in Buffett’s circle of competence.
Read a couple of chapters, excellent insights into minds of successful traders. Found this way more impressive. Some juice from the ripened fruit:
– With all due respect to Buffett’s statement, trading / investing is not about investing in great companies with durable moats but about profiting from inefficiently priced stocks. One could invest in great business yet make ordinary returns.
– From a psychiatrist who helped suicidal patients and later athletes and fund managers – it is very difficult to win an Olympic Gold medal or be the best fund manager, the distinctive trait of winner is that they decide and take a resolve that they would win
– Don’t think of making money, first worry about not losing money
– Any investment approach that is heavily reliant on accurate forecasting for several years ahead or involves the purchase of high-expectation stocks is inherently risky.
– more to read..