Investment Philosophy
AI Losers (as investment strategy)
Buying 'AI losers' — stocks ignored because they aren't AI beneficiaries.
Growth Demagogues
Growth demagogues will argue that valuation is irrelevant for high-growth companies because the price you pay for growth doesn't matter.
Value Demagogues
Value demagoguery starts when value investors read Ben Graham's Intelligent Investor and the main point they get out of the book is that they need to buy statistically cheap stocks.
Buy and Hold (critique)
Buy and hold (never a great idea in any environment) absolutely must be replaced with buy and sell.
Index Investing (as religion)
Over the last fifteen years, index investing has turned into a religion that promises never-ending returns from stocks, no matter how expensive the stock market might be. 'Buy the dip' and 'never sell' have become this religion's commandments.
Investing as a Probabilistic Adventure
Investing is a probabilistic adventure: You assess upside and downside probabilities of a potential investment, and if at the end the balance is significantly favorable, you pull the trigger.
One Stock at a Time
We don't own the market; instead we have humbly assembled a portfolio of $0.30 to $0.60 dollars. One stock at a time.
Fool’s Gambit
They are playing Fool's Gambit — waiting for a greater fool to buy their overvalued stock from them. It is just a meme, a speculative gambling instrument used by one fool in search of an even greater fool.
Thoughtful Arrogance
Investing is an act of arrogance. You are basically saying, 'I am right and the person on the other side of the transaction is wrong.' This arrogance requires amnesia of your past successes and failures; it is earned with your current sweat, through thorough research.
Smart Businessman Approach
The value investor approaches the stock market like a smart businessman would if he were buying a business or an office building with the intention of owning it for a long time.
Value Investing
Value investing to me is a philosophy that is governed by what I call the Six Commandments of Value Investing.
Active Value Investing
Stock selection rather than market timing. The process involves identifying stocks within one's competence circle, analyzing qualitative criteria (competitive advantages, strong balance sheets, high return on capital, shareholder-friendly management), determining valuations, and establishing appropriate margins of safety.
