Think about what type of case it is and what principles apply to that type of case. By doing this and helping others to do this you’ll get better at handling situations as they repeat over and over through time.
There are six phases of market mood in Cheung’s model: Normal— This is the base-building or consolidation phase where fundamentals are poor but stabilizing. Value investors are showing interest. Hypomania— Favorable news shocks hit the market, and prices break higher out of consolidation. Speculators, focused on short-term gains, begin buying. As the market continues higher, […]
Cycle positioning is the process of deciding on the risk posture of your portfolio in response to your judgement regarding the principle cycles, and asset selection is the process of deciding which markets, market niche and specific securities or assets to overweight and underweight. There are the two main tools in portfolio management. It may […]
To be a successful investor you need to know two things – How to Value a Business, and How to Think About Market Prices. Buffett wrote about this in his 1996 letter to shareholders. To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing […]