I got into a conversation behind the scenes with a very well-known and talented chartist about a chart I made recently and I was told that it was essentially “Tourist Technician” in its simplicity.
Which made me smile.
Because while I love nothing more than to borrow the most helpful and prescient aspects of all the major securities analysis religions, the one thing I’ll never do is join one.
The greatest stock market investor of all time, Peter Lynch, had a nickname – The Chameleon. This is because no matter what was going on in the market he was able to adapt what he was doing to triumph. Lynch averaged – averaged – 29% annually for 13 years. No one else even comes close, every other manager in history is playing a different sport entirely.
If flexibility is an investing virtue, then Lynch is its patron saint. I am certain he had a great grasp on the core tenets of everything from Graham & Dodd to Growth At A Reasonable Price. And I’m sure he knew exactly when to accentuate the influence of one over the other depending on what was working.
I have great respect from those who’ve dedicated themselves to a given discipline, be it momentum or deep value, fundamentally-oriented or technically inclined. I’ll say for posterity that there is more than one way to skin a cat, and then I’ll tell you that I have no interest in initiating myself in the dogmatic rulebook that any of you pray to. Because I already know that nothing works more than a third of the time.
The great practitioners of these styles know this as well, and they expect to make a killing during the period in which the market regime favors their skills. Witness the value player who accepts the inevitability that he will have to be patient, witness the acceptance by the momo trader that some environments offer more false breakouts than actual follow-through. The rest are all fooling themselves.
And to cap off this talk (and it was a good talk, thanks for coming) I’d like to share two quotes from two of the most successful market particpants of the last century:
“The only sound reason for my buying a stock is that it is rising in price.” — Nicholas Darvas
“The dumbest reason in the world to buy a stock is because it’s going up.” — Warren Buffett
If that doesn’t sum up the value investor / momentum investor in a nutshell, I don’t know what does.
These two quotes (and hundreds of others) appear in the prolific author Mark Skousen’s new book Maxims of Wall Street.
Apparently Buffet himself is a fan of these timeless (if contradictory) maxims. His note to the author here:
“Loved your great little book. In fact, I plan to shamelessly steal some of the lines.” –Warren Buffett
Expertise in a given investment style is great. Being doctrinaire about that style to the exclusion of all other wisdom is the fastest route to beclownment.
Check out Mark’s book at Amazon:
Maxims of Wall Street: A Compendium of Financial Adages, Ancient Proverbs, and Worldly Wisdom
Read Also:
تبلیغ در گوگل ادوردز
Create more, thats all I have to say. Literally, it appears as although you relied on the online video to make your position. You certainly know what youre speaking about, why waste your intelligence on just publishing videos to your internet site when…
FS 19 mods
[…]Wonderful story, reckoned we could combine a couple of unrelated data, nevertheless actually worth taking a search, whoa did 1 master about Mid East has got far more problerms at the same time […]
http://jerseycity-exterminator.com
[…]Every when inside a while we decide on blogs that we study. Listed below are the most recent websites that we decide on […]
تبلیغ در گوگل ادوردز
Fantastic weblog! I discovered it even though surfing about on Yahoo Information. Do you have any ideas on how to get outlined in Yahoo Information? I’ve been trying for a whilst but I in no way seem to get there! Cheers
plaster my house
[…]very couple of internet websites that transpire to be comprehensive below, from our point of view are undoubtedly well worth checking out[…]
yoyomedia
[…]very couple of internet websites that come about to become comprehensive below, from our point of view are undoubtedly well really worth checking out[…]
Arcade game
[…]here are some links to sites that we link to for the reason that we feel they’re worth visiting[…]
thrusting rabbit sex toy
[…]here are some links to web pages that we link to simply because we assume they’re worth visiting[…]
babhi didlo
[…]Sites of interest we’ve a link to[…]
digital music
[…]check beneath, are some absolutely unrelated internet sites to ours, however, they may be most trustworthy sources that we use[…]
hotel offers
[…]that will be the finish of this post. Here youll discover some web pages that we believe you will enjoy, just click the hyperlinks over[…]
Malaysian peruvian indian remy Brazilian Hair wigs extensions wholesale quick delivery discount price
[…]here are some links to web sites that we link to mainly because we believe they may be worth visiting[…]
husky dog expert
[…]just beneath, are quite a few entirely not related web sites to ours, nevertheless, they may be surely worth going over[…]
mp3
[…]one of our visitors not long ago encouraged the following website[…]
mp3
[…]although internet websites we backlink to below are considerably not associated to ours, we really feel they may be in fact worth a go via, so possess a look[…]