Monday, July 29, 2013

It is about not doing dumb things


"I've heard it said many times that value investing is not as much about doing smart things as it is about not doing dumb things. Avoiding mistakes, resisting market fads, and focusing on allocating capital into ideas that are highly likely to produce satisfactory returns and that offer a margin of safety against permanent capital loss – these are the dominant themes of the value investing approach . Contrary to how it sounds, these elements don't make value investing easier than other approaches. In fact , cultivating the discipline to avoid unproductive decisions, refining the craft of valuing businesses and assessing risk, and developing the emotional and mental equilibrium required to think independently in a field in which there is tremendous pressure to conform requires constant diligence and effort .”

—Zeke Ashton, Centaur Capital


Share/Bookmark

No comments:

Post a Comment