As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Friday, 8 July 2016

Book: The Education of Value Investor


Guy Spier is a Zurich-based investor and author of a book on investing entitled The Education of a Value Investor.[1] He is well known for bidding US$650,100 with Mohnish Pabrai for a charity lunch with Warren Buffett in June 2007.[2] In 2009, he was featured in "the Checklist Manifesto", by Atul Gawande regarding his use of checklists as part of his investment process.[3]

Spier manages the Aquamarine Fund, an investment partnership inspired by, and styled after Warren Buffett's 1950s investment partnerships. He is also an occasional financial commentator in the media.[


 
 
After reading this book, Uncle8888 is more convinced that Losing is part of the Game.
 
How much can you stomach your paper losses in this Game?
 
These two guys paid USD650K to learn investment lessons directly from Warren Buffet.
 
They are investment Masters too!
 
What happened in 2008/2009 to these two investment Masters?
 
 
 
Guy: Down - 46.7%
 
Monash: Down -5X%???
 (since his paper loss was worse than Guy)
 
CW8888: Down -53%
 
Losing is part of the Game.
Even for investment Masters too.
 
Right?
 
The Take Away: The Key Test is our investment portfolio able to recover to pre-crisis level and beyond then our portfolio management, investing strategy and stocks pick should be okay.
 
 
 
 
 
If a Stock tumbles after you buy it; don't sell it for two years.
 
CW8888: How many retail investors can stomach it?
 
 
 


 
 
 
 
 
 
 
 
 
 

1 comment:

  1. WB had said that people who cannot stomached a loss of 50% of their stock portfolio should not be in the market.(IIRC)

    Because in your investment journey, you will definitely be caught at least once if not more then once - A 50% loss!

    In 2008/9 it happened to me.
    Not to mention lesser but not less frightening 30 to 40 % loss of my stock portfolio in other times.
    That's why must thank GOD that I can survive until today.

    ReplyDelete

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