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Psychology of Human Nature

It will give you a feel for human nature. They take psychological subjects, and they show them a white square against a black background. And they ask them to estimate how far away the square is. They tell them it is between 1 and 20 feet away. And they ask them to estimate the error […]

valueandprices
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SEARCH STRATEGY by Bruce Greenblatt

Look intelligently for value opportunities. You must have search strategies. Every time you sell stock, someone else is buying that security. Vast majority—95%–is selling because the stock will go down versus buying because the stock is going up. You seek a seller that is motivated by psychological imperatives other than the underlying value. One person […]

Psychological factors - valueandprices
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Psychological Factors by Bruce C. Greenwald

Greenwald sees three psychological factors that best explain why certain stocks become undervalued. Psychological Factors by Bruce C. Greenwald  First, as Buffett himself said, value stocks don’t tend to have big payoffs. Their success is incremental; you won’t strike it rich overnight. They are in every sense the opposite of lottery tickets. And people love lottery […]

Deep Value
Thoughts

Tobias E. Carlisle

“These findings reveal an axiomatic truth about investing: investors aren’t rewarded for picking winners; they’re rewarded for uncovering mispricings – divergences between the price of a security and its intrinsic value. It is mispricings that create market-beating opportunities.” Please follow and like us:0

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Tips From Master Investors

1. “The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” — Warren Buffett 2. “A business that makes nothing but money is a poor business.” — […]

valueandprices
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Cheung’s market mood model

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, […]