Monday, November 5, 2012

Ignore the efficient market hypothesis?

I am not an expert in investing. This is my trading notebook for myself and close family. You are welcome to any of my research, but do your own research and form your own opinions.

I just read that in article by Value Investing. I am not wise enough to say they are wrong; I surely have my share of mistakes. However, I do know that Wall Street has their share of computers and databases, they may not know everything, but they know a lot.

The article is worth reading, as an investor I need to always challenge my beliefs. And they make some good points, especially with stocks that do not have much analyst following. Here is a seeking alpha write up of best and worst performing stocks of late. If I understand the Value Stock Guide article correctly, there may be a gem somewhere in the worst performing list, find a thinly followed small cap stock; research the company and open a small position. Not sure that I have the smarts to buy a stock just because it is in the worst performing list :).

5/1/13 Found some web site that tracks what Hedge funds are doing. They claim to be beating the S&P by 20% or some such. I guess the idea is to hang onto the hedgefund coattails, ( the smart money), and invest in the stocks they invest in. Strikes me as an odd approach and apparently they want you to buy their research to get a detailed look. I think it would be easier to look at the top holdings of some of the better performing ETFs and Mutual Funds, BUT that doesn't make it a good idea. To make money in the stock market we have to buy the right stock at the right price. I doubt they know how they acquired the stocks, limits, puts, calls, some combination. Anyway, what a glorious week to see so much green on the balance sheet. What I am trying to remind myself, ( learn, Stephen, learn), is NOT to make the classic small investor mistakes.

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