A few months ago I produced a series of Checklists to be used when Buying particular kinds of Stocks and then some while later it hit me that I ought to produce one for those very high risk, often loss-making, start-up type businesses on AIM that I avoid on the whole but occasionally I will buy into one. Before getting stuck into this particular one, here are Links to the other ones I produced – in fact this is the final one but it has Links to the others:
http://wheeliedealer.weebly.com/educational-blogs/normal-portfolio-buy-checklist-quality-at-a-fair-price-buffett-stock
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I really liked this one, it covers perhaps one of the most significant major battles of World War 2 and has a particular focus on the incredible defence undertaken by a small Unit of around 18 US Troops who found themselves at a key location in the last major German offensive.
The story is mainly concerned with a Unit of US Soldiers who are supposed to be Intelligence & Reconnaissance specialists and who are intended to be undertaking patrols behind enemy lines with a view to obtaining vital intelligence on German positions and movements etc. It turns out that in late 1944 when a severe Winter is kicking in, there is a gap in the line for the Allied deployment in the Ardennes Forest and the Unit gets asked to, in effect, act as General Infantry and to man the gap to complete a defensive perimeter.
In the Investors Chronicle dated 17th to 23rd May 2019 with ‘The Activist Effect’ as the main headline on the front cover, on page 32 there is an article called ‘Fund Managers are human after all – that’s the problem’, which makes a very good read although it is perhaps a bit ‘academic’. I guess that is where I come in and if I am doing my ‘job’ correctly then I hope I can convert what seems academic into something that normal people can digest.
It was written by Nilushi Karunaratne and the high level summary would be that Portfolio Managers make good Buying Decisions but make poor Selling Decisions – and the interesting bit is that some of the conclusions are perhaps worth taking onboard ourselves as Private Investors (assuming you are not a Portfolio Manager reading this !!) because, contrary to what many people think, institutional investors are often no better than we are (and many are worse). And the simple fact is that human psychological biases apply whoever you are. Later in my Conclusion bit I will address what we can learn.
I have felt for some time that Readers are struggling a bit with how the WD Websites are structured and this makes it hard for them to find stuff. I have realised this from comments people make and this has driven me to try to explain it simply via a Blog so Readers can get a lot more out of the Sites. I know people dislike the layout of the Websites changing so I promise I will not change how they are structured very much and if I ever do make some significant changes, then I will try to explain them very well. At the time of scribbling this I do not foresee any such changes (to be honest it is a pain in the backside for me as well so I am in no rush to change stuff !!).
My plan is to put a Link to this Blog near the Top of the Homepages so Readers can quickly refer to it if need be and of course any new Readers should find it useful.
Clearly this is Part 2 of these particular Blogs and you can find Part 1 here if you have not already endured it or you need a refresher:
http://wheeliedealer.weebly.com/educational-blogs/only-the-unprepared-panic-part-1-of-2 What can we do to control ‘Panic’? However much experience we have and however much we prepare and work to reduce the negative impacts, to an extent I think feelings of Panic are pretty much inevitable although perhaps with time we Panic less and it is more a feeling of mild anxiety than a full-on Panic Attack. Anyway, bearing this in mind, it is really about what can we do to lower the dangerous occurrences of such feelings and to reduce their severity when they do strike? I suspect the ‘solutions’ come in 3 categories: Forward Planning, Careful Portfolio Management and Psychological Techniques.
Back in early 2017 my mate Phil wrote a couple of Guest Blogs about Peer-to-Peer (P2P) Lending which are very good as they describe in detail the ins and outs. Anyway, since then a lot has changed in the sector as it has matured and Phil has bashed out the following Guest Blog which updates where we are now. The original Blogs can be found at the Links below, and Big Thanks to Phil for providing this refresher,
Regards, WD. http://wheeliedealer.weebly.com/educational-blogs/guest-blog-peer-to-peer-lending-worthy-of-consideration-in-an-environment-of-low-interest-rates-and-rich-stockmarket-valuations http://wheeliedealer.weebly.com/educational-blogs/guest-blog-from-phil-sloan-how-to-protect-your-p2p-earnings-from-tax-the-ifisa
The ‘working title’ for this Blog when it was just a mere whisp of an idea in the WheelieBonce was ‘Only the Inexperienced Panic’ but the more I thought about it the more I felt this was a bit insulting and in reality we all panic but there are ways we can reduce such episodes and I wanted to talk about how to do this.
As usual with my Blogs, a lot of the ideas just come out of thin air and no doubt my Brain is triggered by something which seems unrelated that I then twist (probably much too far) into a topic loosely related to Investing !! My inspiration for this one came from the icon Thomas Weekes on ‘Misfit Garage’ on Discovery Turbo when he came out with the line, “My old daddy used to say, only the inexperienced panic”, and that cemented the thought in my head.
As always, if you have not endured Part 1 yet, you really should read it first or none of this will make any sense (I am not guaranteeing that it will make much more sense even if you do read Part 1 but at least you might have a fighting chance) and you can find Part 1 here:
http://wheeliedealer.weebly.com/educational-blogs/you-cant-time-the-market-part-1-of-2 In Part 1 I outlined why “You can’t time the Markets” comes about, but what are its flaws?
This Guest Blog has been kindly sent to me in order for Readers to see what Journal.Investments are providing in terms of a Website through which you can record information about particular Stocks in a structured way with various ways to analyse your performance and it is FREE to use. I first became aware of this perhaps a year ago and I have had various chats with the guys who run it with regards to how it can be shared with the wider community. It is now ready so feel free to take advantage. Having proof-read the text they sent me I have to say that it does sound a very useful tool.
I have no commercial relationship with Journal.Investments. Cheers, WD. PS. You can find a copy of ‘The Art of Execution’ in Wheelie’s Bookshop if you are desperate to spend money.
I am definitely courting controversy with this one.
We see it all the time – “You can’t time the Market” and “You must stay fully invested” and all this sort of stuff. To an extent I do agree with this but to be honest it is quite a limited extent and I would make the argument that it is far too simplistic and totally ignores stacks of considerations that we need to weigh up in the Real World. No doubt you will have spotted that I bleat on about ‘The Real World’ all the time and it is a big thing with me. I find that so much Financial Writing is academic and theoretical and so obviously not written by people who actually trade and invest in the Markets on a daily basis – if they did, they wouldn’t write this cr*p. |
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