Yes, as my mentor told me before, the road of a value investor is relatively lonely compared to "the power of group" investment strategy. Really, it is. However, I do enjoy the life of value investing, especially when I can help people around me get profits from stock market investment and increase their wealth slowly but steady.
The life of a value investor like me is quite simple. Go to 'market' to buy some 'cheap' (undervalued company) and store them (hold) in inventory, then sell out when people ask with high price (over-valued). It looks like simple, but I must admit that it is very very hard. Because too many 'noises' and 'rumous' try to convince you sell out your shares with cheap price.
Currently, most of my counters in my portfolio have quite attractive paper profits, but to me, they are still undervalued. Most of my investment time is used to evaluate the value of a business instead of predicting the future trend of market price. Because the future is unpredictable.
Sifu is still sifu. A very simple advice makes me to be clear all the time. That is why I have the courage to ask people around me to cheap buy some companies during September ~ November 2011. What is the trend of future? Bear or bull? I don't know and I don't want to waste time to make any prediction.
More Passion in Study, but Less Transaction and Prediction. No matter what trend now it is, nothing can stop me to cheap buy undervalued companies, and nothing can attract me to expense buy over-valued business. It is my belief, as a value investor.
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Written by: Xaivier Chia