03 July 2013

Intelligent Investor - Margin of Safety + Investment Strategy

Some key points after reading Intelligent Investor:

1. Margin of Safety - Before you invest, always lower down your target buying price compared to the intrinsic value, just in case your forecast maybe wrong.

2. Investment Strategy -

2.1 Buy Low Sell High - May be the best strategy, but you may focus on 2 parts: buy in those high growth stocks that could enjoy faster growth rate; buy in those counters that neglected by investors for temporary due to some reasons.

2.2 Believe in yourself and do not follow the crowd, to avoid that you could be selling at lower price or be buying at higher price.

Most importantly, you can just do nothing but waiting for the opportunities to come. Anyway, be focus on the business you are invest in rather than the stock price fluctuation.
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2 comments:

  1. James BongJuly 4, 2013 at 9:50 AM

    Hi Jack,

    I fully agreed with what you say.

    Allow me to add one more point for small investors like me, set in the risk management. Before we make money, we must be ready to loss small sum of money when the market turns against us. "Cut your losses early, and let your pofit runs".

    TQ

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    1. JACK PHANGJuly 4, 2013 at 2:21 PM

      Ya, I do agree that there are two parties here, Buyers and Sellers. We have to be fully understand why buyers wanna buy and why the sellers wanna sell before we act. Else it is simply just a gambling.

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