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Did Value Investors Survive 1929-1932?
- Thread starter short&naked
- Start date
Quote from makloda:
I'm pretty sure both Buffet and Klarman bet 90% of all global professional traders over the last 20 years on a risk adjusted ROI% basis (e.g. Sharpe ratio).
Repeating Buffet's name a hundred times won't make you any richer. In one trade I generated as much profit on a percentage basis as a "Value investor" would in several years.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=151122
Just let me get this straight. You're trading a $1000 Forex account and shooting for 80% gains per trade? And you tell me how much superior you approach is to Klarman's?Quote from IShopAtPublix:Repeating Buffet's name a hundred times won't make you any richer. In one trade I generated as much profit on a percentage basis as a "Value investor" would in several years.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=151122
What you're doing is gambling and has nothing to do with trading. Sooner or later you will blow up, like millions of other hopefuls before.
You realize how ridiculous you look trading a 4 digit account and discrediting Klarman?
Quote from makloda:
Just let me get this straight. You're trading a $1000 Forex account and shooting for 80% gains per trade? And you tell me how much superior you approach is to Klarman's?
What you're doing is gambling and has nothing to do with trading. Sooner or later you will blow up, like millions of other hopefuls before.
My approach is superior to wannabes who think they can acquire greatness by casually dropping names of money managers.
Mentioning Buffet all day long does nothing for YOU. You are welcome to join Klarman&Buffett admiration society.
Quote from makloda:
Do yourself a favor. Bookmark and look at this thread again once you blow up that $1000 account of yours.
Maybe you'll learn a thing or two.
You are just not very bright that is all. That is very similar to the behavior of an elementary school kid who learned a new word in school and is all puffed up.
It is not my $1000 account. Because there were no families to give me millions and I am starting out with 0 I actually have to periodically withdraw proceeds from my trading to cover living expenses. I have to take on bigger leverage to amplify returns and strive to reach the "take off" level at which I can switch to something like 20:1 leverage.
Now you can repeat Buffet&Klarman all you want but it does not make you any better or more knowledgeable.
I was looking at a value model and it was outperforming until about the middle of October when it did a swan dive and did even worse than the momentum stocks from that point onwards.
Value seems to be steady until it reaches a certain threshold and then it plunges like the rest.
Value seems to be steady until it reaches a certain threshold and then it plunges like the rest.
IShopAtPublix gets the purpose of this thread.
I was questioning whether the value investing approach would work at any time in history and at any point in the business/economic cycle (this is what value investors claim when their deride market timers as nothing but gamblers).
"Just stick it out" they say. "Don't try and predict recessions or where the market will be!"
In the face of a massively inflated P/E, I think this is a recipe for disaster.
The other interesting thing about value investing is that one can easily be right for the wrong reasons, especially during bull markets.
They say you can't predict where the market is going (the market meaning the averages), yet the averages rotate through companies like nobody's business (AIG was taken off the Dow 30 recently!). At the same time they say, buy during declines:
http://www.youtube.com/watch?v=f4-VA_PpWvA
Value investors ARE trend traders. They have been trading in the direction of economic expansion. To think that this trend will continue indefinately is beyond crazy and is the worst sort of simplistic thinking! And even if it does, you can still be holding a losing position for decades until you break even.
For those who throw Buffet's name around: Guess what, he only made about 5% of his money by value investing.
I was questioning whether the value investing approach would work at any time in history and at any point in the business/economic cycle (this is what value investors claim when their deride market timers as nothing but gamblers).
"Just stick it out" they say. "Don't try and predict recessions or where the market will be!"
In the face of a massively inflated P/E, I think this is a recipe for disaster.
The other interesting thing about value investing is that one can easily be right for the wrong reasons, especially during bull markets.
They say you can't predict where the market is going (the market meaning the averages), yet the averages rotate through companies like nobody's business (AIG was taken off the Dow 30 recently!). At the same time they say, buy during declines:
http://www.youtube.com/watch?v=f4-VA_PpWvA
Value investors ARE trend traders. They have been trading in the direction of economic expansion. To think that this trend will continue indefinately is beyond crazy and is the worst sort of simplistic thinking! And even if it does, you can still be holding a losing position for decades until you break even.
For those who throw Buffet's name around: Guess what, he only made about 5% of his money by value investing.
Peter Lynch: "The markets are always fairly valued".
Also another reference to the Dow. ONE MORE TIME: THE COMPANIES ARE ROATATED!
http://www.youtube.com/watch?v=1r9kXM5-qUY&feature=related
This guy is full of fallacies.
Also another reference to the Dow. ONE MORE TIME: THE COMPANIES ARE ROATATED!
http://www.youtube.com/watch?v=1r9kXM5-qUY&feature=related
This guy is full of fallacies.