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basant
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   Posted: 13/Nov/2006 at 9:54am |
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Good work Kulmanji. Please keep updating this at your leisure. You know somethings are so simple but yet it never crosses our mind. Most of the analysts always have an opinion on any stock/any sector. Things that they do not understand and feel uncomfortable about is mommentum and things that they are attracted to are termed as smart money buying. Seldom heard any one say "I do not understand this company". RD says that at times though.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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BubbleVision
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Posted: 14/Nov/2006 at 12:46pm |
BasantJi... i once heard a TA (without a U)... once saying that "i dont understand that chart".... U can guess it he who was.
My "Cricle of Competence" is Technical Analysis. i too dont undestand charts of illiquid stocks and very very small cap stocks. I dont see that many charts.
Kulman... Keep up the excellent work.
Edited by BubbleVision - 14/Nov/2006 at 12:47pm
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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kulman
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Posted: 14/Nov/2006 at 6:26am |
During that lecture when a student asked The current tenuous economic situation and interest rates? Where are we going?
Buffett's response: I don’t think about the macro stuff. What you really want to in investments is figure out what is important and knowable. If it is unimportant and unknowable, you forget about it. What you talk about is important but, in my view, it is not knowable.
But we have never not bought or bought a business because of any Macro feeling of any kind because it doesn’t make any difference. We don’t want to pass up the chance to do something intelligent because of some prediction about something we are no good on anyway. So we don’t read or listen to in relation to macro factors at all. The typical investment counselor organization goes out and they bring out their economist and they trot him out and he gives you this big macro picture. And they start working from there on down. In our view that is nonsense.
Edited by kulman - 14/Nov/2006 at 6:27am
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Life can only be understood backwards—but it must be lived forwards
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kulman
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Posted: 15/Nov/2006 at 10:41pm |
Buffet speaks here very highly about Ben Graham's influence on him:
I was very fortunate. I picked up his book (The Intelligent Investor) when I was nineteen; I got interested in stocks when I was 6 or 7. I bought my first stock when I was eleven. But I was playing around with all this stuff—I had charts and volume and I was making all types of technical calculations & everything. Then I picked up a little book that said you are not just buying some little ticker symbol, that bounces around every day, you are buying part of a business. Soon as I started thinking about it that way, everything else followed. It is very simple*. So we buy businesses we think we can understand.
----------------------------------------------------
*so simple, yet so difficult!
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Life can only be understood backwards—but it must be lived forwards
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kulman
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Posted: 16/Nov/2006 at 8:12pm |
While responding to liquid/illiquid stocks (or rather why Berkshire's stock was not split all these years), Buffet replied this:
If I had a church and I was the preacher and half the congregation left every Sunday. I wouldn’t say, “It is marvelous to have all this liquidity among my members.” Terrific turnover… I would rather go to church where all the seats are filled every Sunday by the same people. Well that is the way we look at the businesses we buy. We want to buy something virtually forever.
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Life can only be understood backwards—but it must be lived forwards
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monu_duggad
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Posted: 16/Nov/2006 at 8:54pm |
Something on buffet which i read in some blog........
Buffett's coin-flipping contest
However one should note that the historical performance may not be
the indicator of future performance. Even if the fund managers
invest randomly you would find top 10 funds giving superb returns.
Warren Buffett had explained this phenomenon in a characteristic
humor. I'm putting this excerpts here(full text in files/articles
section)
**THE SUPERINVESTORS OF GRAHAM-AND-DODDSVILLE by Warren E. Buffett**
"I would like you to imagine a national coin-flipping contest. Let's
assume we get 225 million Americans up tomorrow morning and we ask
them all to wager a dollar. They go out in the morning at sunrise,
and they all call the flip of a coin. If they call correctly, they
win a dollar from those who called wrong. Each day the losers drop
out, and on the subsequent day the stakes build as all previous
winnings are put on the line. After ten flips on ten mornings, there
will be approximately 220,000 people in the United States who have
correctly called ten flips in a row. They each will have won a little
over $1,000.
Now this group will probably start getting a little puffed up about
this, human nature being what it is. They may try to be modest, but
at cocktail parties they will occasionally admit to attractive
members of the opposite sex what their technique is, and what
marvelous insights they bring to the field of flipping.
Assuming that the winners are getting the appropriate rewards from
the losers, in another ten days we will have 215 people who have
successfully called their coin flips 20 times in a row and who, by
this exercise, each have turned one dollar into a little over $1
million. $225 million would have been lost, $225 million would have
been won.
By then, this group will really lose their heads. They will probably
write books on "How I turned a Dollar into a Million in Twenty Days
Working Thirty Seconds a Morning." Worse yet, they'll probably start
jetting around the country attending seminars on efficient coin-
flipping and tackling skeptical professors with, " If it can't be
done, why are there 215 of us?"
By then some business school professor will probably be rude enough
to bring up the fact that if 225 million orangutans had engaged in a
similar exercise, the results would be much the same - 215
egotistical orangutans with 20 straight winning flips"
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If you think you can,You Can
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kulman
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Posted: 16/Nov/2006 at 9:08pm |
Excellent, Monu jee!
That was really interesting!
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Life can only be understood backwards—but it must be lived forwards
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bebullish
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Posted: 16/Nov/2006 at 9:59pm |
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Superb Monu
Excellent read.
Its not without reason WB is what he. Rock solid conviction in his decision abt the BUSNIESS. Thats what sets him apart.
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Success is nobody's monopoly. It requires action & imagination only.
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