Nooruladha’s Weblog


How am I, an amateur, to beat them all?
July 21, 2008, 6:18 am
Filed under: Uncategorized

Picking up from http://whereiszemoola.blogspot.com/2008/07/investment-lessons-we-can-use.html,
, this is an interesting article putting us in scope. The articles boils down on personal advice for novice like me!

The pertinent question to ask is, should I quit, knowing my wit, investment ideas and skills is no match against the like of professionals, a team of analysts who might have graduated cum-laude from their alma mater, who probably can spot a statistical shit out of their asses by just looking at a graph. Me, i learnt from books and internet, and probably doesn’t understand most of term.

The only advantage I have is business point of view that I accumulated over the year. Not to say I understand business world, which is a cut-throat as it is, really that much, but what I understand is a good business is  a business that sells their things well with good price. Well, Buffett always talk about “circle of competence”, so I believe by understanding the nature of business, and its management, I can safely invest in those business. To me, the best business is food product, where no matter what happens, people still eat. Accounting-wise, I am not that good, and I leave it at that. It is a defect on my side, and I believe as my money goes bigger, I will need to start looking into some classes.

Regardless, driving back at the original question, I don’t think so I will be available to beat the market, in the short run. I don’t think so I can beat the analysts either. So, why bother investing? I think it is the game itself, but for me, it is a dream of making money. They talk about diversification, for idiot like me. It is true that I must invest some in the mutual fund, or maybe in some gold investment. The drawback is diversification is good but the rate of return is lower.

The answer is I should not quit, and over time, I must start educating myself more. And I’m sure there are a lot of investors and traders, professional ones, are laughing because there is another sucker out there.

The other way is to start having more exposure in unit trust, gold saving and FD, and less in the stocks, so that the net gain is well, a positive net.

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1 Comment so far
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Nice writing. You are on my RSS reader now so I can read more from you down the road.

Allen Taylor

Comment by Allen Taylor




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