Recent content by Justo22

Hmmm ok. I will look into this a little further then. And thank you for the input. I do appreciate it.

Global hunter securities reverse merger securities... what about it? Lol and I'm assuming you do all those things when you invest into a company? Yes there are some Chinese companies that have been scams but not all of them are. As for your statement about the inventories and the accounts...

Hmmm yes you may be correct. I admit I have not dug deep into some of the more modern takes on MPT. And I thank everyone who has contributed to the discussion. And I will check some of the more recent stuff. Lol and I am aware that it is not as simple as the examples I gave. If I were to give a...

I take no offense at all I love the discussion. Yes you are probably correct in saying that I do not know the deeper workings of the theory than someone who studies it in great depth. However the assumptions that it uses (which are far greater than the ones I have pointed out here) add too much...

Ha well maybe you could suggest something else then? Or maybe elaborate on why it works?

Haha ok yes I understand it was a long one. I just thought it was an interesting piece of writing. But thank you for the feedback. If I was to suggest an alternative off the top of my head it would be to use a value oriented approach to investing. And for those who relly don't want to lose any...

I don't understand. Could you eleborate on that?

My point is that the model doesn't work. I know it's a long one, but I'd rather showcase how it doesn't work by providing some examples rather than just make wild accusations. I mean, this theory is still used by many financial institutions right? And if that is the case then they should know...

MPT – Strike 1: Investors Are Rational A friend of mine told me that I should look at the Modern Portfolio Theory (MPT) for some ideas on what to write about. Boy was he right. But first, what is MPT? MPT is a theory of investment which attempts to maximize a portfolio’s expected return for a...

1. Focus on the Intrinsic Value of Companies – This is by far the most important rule for the value investor. Intrinsic value can be defined as “the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both...

It's so true. Half the time these financial advisors don't know what they are talking about anyway. I mean in the industry if 60% of your stock picks make money they are considered good. That is a terrible average haha. I might be going for my CFA I'm currently taking the first course. It seems...

I had a little argument the other day with someone about diversification. Well not so much an argument but more of a debate. Now, I understand diversification and the reasons for why it is used, but I don’t think people realize that there are also some pitfalls that come with it. But let’s look...

Longer posts of course!

We need to get you reading more! :D

This question first came to me while I was thinking of another blog that I intend to (hopefully) complete one day, the basis of which was about having emotional control while investing. I began to think about how backwards the thinking is for the majority of investors out there and about an...