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I've been beating the market, albeit by only a few percent, for years. I may just be lucky, but I believe my methods give me an edge. I study the market fundam
by oofabz 13y ago
I've been beating the market, albeit by only a few percent, for years. I may just be lucky, but I believe my methods give me an edge.
I study the market fundamentals and prioritize the long-term health of a company over short-term profits. I like companies that are never in the news, on the theory that lack of attention lowers demand. I think about long-term economic trends, like the center of US population moving west and the increasing price of oil.
But right now the stock market seems too hot, so I am investing in other assets. Eventually, there will be a bust, stocks will fall and gold will rise, and I will sell gold and buy stocks. Nothing apocalyptic, just the normal business cycle that has been repeating for centuries. Corporate investors do not have the luxury of thinking this far in the future, because their management and clients are focused on quarterly profits. I believe patience is a competitive advantage.
- gabemart 13y ago> I've been beating the market, albeit by only a few percent, for years. I may just be lucky, but I believe my methods give me an edge. The problem is that for an outsider to whom you are a stranger, the former is overwhelmingly more likely than the latter.
- hessenwolf 13y agoNormally, being willing to lock up your money for longer gets you the liquidity premium (e.g., term structure of interest rates). This argument of long-term investment I have heard used pro the German and Italian (sleeping giant) economies, which are dominated by family owned SMEs.