I read annual reports and related materials daily, and have found that Buffett was very right about how knowledge works like compound interest. What I've found in assessing companies is that the truly great ones downplay their position, while the pie in the sky market opportunities usually represent stagnant capital and/or intense competition (weak margins). The longer the horizon, the less competition you will face in regards to price paid versus value, but too much dependency on growth also leaves you vulnerable to permanent loss when growth fails to materialize. Lastly, never discount the value of a great capital allocator at the helm. A CEO of a company earning 20% ROE that keeps 75% of the company's earnings each year will have made capital allocation decisions representing half of the equity of the company within 5 years.
Equanimity is one of the most powerful characteristics to possess in investment management. Opportunities are always available in the market but it is a job that requires extensive research, analysis, objectiveness, and sometimes secondary opinion.
Disclaimer: All articles provided are for entertainment purposes only. Interpret everything as opinion rather than fact and do your own due diligence. These statements are not an offer to buy or sell any security.
I am a Portuguese independent trader, analyst and algorithmic trading expert, having worked for both sell side (brokerage) and buy side (fund management) institutions.
I've been trading professionally for about 20 years and also launched www.thinkfn.com in 2004. Thinkfn (Think Finance) carries thousands of educational articles on finance and the markets.
I trade futures, stocks from the long and short side, forex and options. I trade both discretionary and fully automated systems (Metatrader, Quantshare and others).
I can be reached at paulo.santosATthinkfn.com or followed on Twitter at twitter.com/ThinkFinance999
I run a small, private long/short portfolio. I focus on long term value, with a full expectation of showing paper losses in the short-term. Agnostic on the topic of catalysts. Wary of false precision. Usually ignorant of quarterly results and analyst forecasts. Seeking durable insights on business models and industry trends, and general wisdom.
I am an individual investor who started investing at the age of 12 and became more serious about it when I started working after college and had money to put to work. My investment style is to find value in any form that I can. This leads me to primarily invest long in equity though I have identified the occasional short (VXX) and options positions as well. Generally I hunt around in the darker corners of the market and my portfolio consists of primarily micro-cap and small caps (FNHC,TFSL), though I have found value in mega-caps in special situations (BP, AIG) from time to time as well. My current investment goal is to put together a 10 year performance track record (2015).