{"id":1972151,"date":"2014-04-11T10:37:57","date_gmt":"2014-04-11T05:07:57","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=1972151"},"modified":"2014-09-09T12:30:23","modified_gmt":"2014-09-09T07:00:23","slug":"answer-answer","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2014\/04\/11\/answer-answer\/","title":{"rendered":"The answer is that there is no answer"},"content":{"rendered":"<p>Here are a bunch of excerpts from articles I have been reading that might sway you to conclude that all investment managers are bipolar masochists.<\/p>\n<h3>Howard Marks<\/h3>\n<p>The truth is, almost everything about superior investing is a two edged sword:<\/p>\n<ul>\n<li>If you invest, you will lose money if the market declines.<\/li>\n<li>If you don&#8217;t invest, you will miss out on gains if the market rises.<\/li>\n<\/ul>\n<ul>\n<li>Market timing will add value if it is done right.<\/li>\n<li>Buy-and-hold will produce better results if timing can&#8217;t be done right.<\/li>\n<\/ul>\n<ul>\n<li>Aggressiveness will help when the market rises but hurt when it falls.<\/li>\n<li>Defensiveness will help when the market falls but hurt when it rises.<\/li>\n<\/ul>\n<ul>\n<li>If you concentrate your portfolio, your mistakes will kill you.<\/li>\n<li>If you diversify, the payoff from your successes will be diminished.<\/li>\n<\/ul>\n<ul>\n<li>If you employ leverage, your successes will be magnified.<\/li>\n<li>If you employ leverage, your mistakes will be magnified.<\/li>\n<\/ul>\n<p>Source: <a href=\"http:\/\/www.oaktreecapital.com\/MemoTree\/Dare%20to%20Be%20Great%20II.pdf\" target=\"_blank\">Dare to be Great II<\/a><\/p>\n<h3>Cam Hui<\/h3>\n<p>Value works. Growth works. Momentum works. Quality works. They just don&#8217;t all work at the same time. A combination of these factors work most of the time, but there are times when a single factor is dominant.<\/p>\n<p>You have to be able to recognize the regime shifts and deploy the right combination of models out of your toolkit accordingly.<\/p>\n<p>Source: <a href=\"http:\/\/humblestudentofthemarkets.blogspot.in\/2014\/04\/a-quant-lesson-from-technician.html\" target=\"_blank\">A quant lesson from a technician<\/a><\/p>\n<h3>Herb Greenberg<\/h3>\n<p>The worst mistakes often come from being too smart for your own good, especially when putting too much trust in your experience, perspective and instincts.<\/p>\n<p>Lessons learnt:<\/p>\n<ol>\n<li>The rules of retail can indeed be broken.<\/li>\n<li>Never count on the insular feeling of superiority of big, lumbering companies to catch a trend.<\/li>\n<li>Don&#8217;t overlook the obvious.<\/li>\n<li>As long as a company has a product customers fall head-over-heels for, the economics don&#8217;t matter until the growth stops.<\/li>\n<li>Good execution and a charismatic, brilliant CEO trump making money.<\/li>\n<\/ol>\n<p>Source: <a href=\"http:\/\/www.thestreet.com\/story\/12622083\/1\/greenberg-my-worst-mistakes.html\" target=\"_blank\">My Worst Mistakes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here are a bunch of excerpts from articles I have been reading that might sway you to conclude that all investment managers are bipolar masochists. Howard Marks The truth is, almost everything about superior investing is a two edged sword: If you invest, you will lose money if the market declines. If you don&#8217;t invest, &hellip; <\/p>\n","protected":false},"author":2,"featured_media":1952201,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471,9],"tags":[1270],"class_list":["post-1972151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-insight","category-your-money","tag-investing","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1972151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=1972151"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1972151\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/1952201"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=1972151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=1972151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=1972151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}