Ice
02-05-2005, 07:11 PM
To All
Making money in the stock market is a tough job. Very few money managers can even beat an index fund over the long haul.The question is if the best and brightest can't beat
an index fund what makes you the individual investor think you can beat it?
I think you can but it takes the right framework. Most investors just jump on the next hot stock or ipo and think thats investing. Sorry that won't cut it. You need to think about the company your buying and trying to figure out WHAT
IT IS WORTH.That is the single most important advice any investor should have tattooed on their forehead.
Most investors have NO CLUE to the value of the stock they are buying. I'm not saying it is easy and their are different ways to value companies,i.e DCF,P-B.P-CF,P-E and more.What i'm saying is before you go out and buy a stock try to figure out what it is worth and leave yourself a margin of error in case your wrong before you buy and you"ll
be ahead of 90% of the investors out there.Good luck to all. Ice
Making money in the stock market is a tough job. Very few money managers can even beat an index fund over the long haul.The question is if the best and brightest can't beat
an index fund what makes you the individual investor think you can beat it?
I think you can but it takes the right framework. Most investors just jump on the next hot stock or ipo and think thats investing. Sorry that won't cut it. You need to think about the company your buying and trying to figure out WHAT
IT IS WORTH.That is the single most important advice any investor should have tattooed on their forehead.
Most investors have NO CLUE to the value of the stock they are buying. I'm not saying it is easy and their are different ways to value companies,i.e DCF,P-B.P-CF,P-E and more.What i'm saying is before you go out and buy a stock try to figure out what it is worth and leave yourself a margin of error in case your wrong before you buy and you"ll
be ahead of 90% of the investors out there.Good luck to all. Ice