Saturday, April 23, 2011

My investment style summed up perfectly

Here is a post from someone on the SLX BBoard...by Bogapet. This sums up my feelings exactly when it comes to my investment style...........

"It's an interesting statement on human nature that when a stock is very undervalued, most people's reaction to that fact is based on one thing: whether or not they own it.

If one does all the work, and figures out that some company is extremely undervalued, and they don't own it, they lick their chops and take advantage of the buying opportunity.

Once they own it, if it continues to be undervalued, eventually they stop seeing it as a buying opportunity, and begin to see it as a complaining opportunity. For some, it only takes a few weeks to go from chop-licking to whining. Others are more patient.

The reason a stock is undervalued is that the market is irrational. Unfortunately, it can stay irrational for a long long time. Just because I noticed that it was being irrational and bought doesn't mean it's going to become rational immediately and reward me for my insight. I have to be ready to wait. Usually a lot longer than I'd like to."

endquote.

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