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Australian Stock Market
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Post: #55
RE: Australian Stock Market
(01-03-2018 07:50 PM)Tail Gunner Wrote:  
(01-03-2018 07:38 PM)Cane Toad Wrote:  I think I read somewhere that Buffet doesn't really worry about market cycles. He instead looks for value.

Haha. That is an understatement. He and Benjamin Graham are widely acknowledged as the forefathers of popularizing value investing.

https://en.wikipedia.org/wiki/The_Intelligent_Investor

But when does value most often present itself? At cycle or market bottoms. Buffet acknowledges that fact in his most famous quote:

Quote:“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”


(01-03-2018 07:38 PM)Cane Toad Wrote:  though ironically the impact of the banking sector crisis resulted in a lot of other market opportunities ie; panic driven selling, forced selling etc.

That is the key point. Whatever it was that caused the bear market presented a great buying opportunity in many sectors. While the S&P and DJIA went down 50%, many sectors fell far greater than that.

True but you also have to have the money at the time the value presents itself. So how do you do that? Always keep a cash reserve ready to invest? But then that money is doing nothing, just earning bank interest when it could be in a stock potentially making capital gains and dividend income.
If you happened to have a whole bunch of money ready when the market crashed in 07/08 and had the timeline to wait for the inevitable rise then great, you'd make a killing.
But how do you know when that crash is coming? Very few people do/did and they made a lot of money from that.

This can cause you to get stuck in the trap of always trying to pick stocks at the bottom which is a mugs game. Unless you know very well that the reason for the bottom is overblown, you can just as easily buy into a company that is tanking due to valid reasons like market destruction or poor management causing the company t go bust. Ask anyone who bought stock in Slater & Gordon in 2015.

When Buffet talks about buying value he means buying into a solid business and backing that businesses fundamentals to generate growth over the years to improve the share price.
He doesn't mean buying something speculative hoping it goes big i.e. an oil/mineral exploration company with no finds yet.
01-10-2018 09:40 AM
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Messages In This Thread
Australian Stock Market - Australia Sucks - 09-13-2016, 07:58 PM
RE: Australian Stock Market - Julio - 09-14-2016, 02:30 AM
RE: Australian Stock Market - TheFinalEpic - 09-14-2016, 06:13 PM
RE: Australian Stock Market - Kangaroo - 09-18-2016, 07:08 AM
RE: Australian Stock Market - BB1 - 06-06-2017, 05:23 PM
RE: Australian Stock Market - BB1 - 08-23-2017, 02:29 AM
RE: Australian Stock Market - BB1 - 12-22-2017, 12:38 PM
RE: Australian Stock Market - BB1 - 02-09-2019, 05:47 PM
RE: Australian Stock Market - BB1 - 07-15-2017, 12:43 AM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:47 PM
RE: Australian Stock Market - Justinian - 07-28-2017, 12:55 AM
RE: Australian Stock Market - Atticus - 01-01-2018, 07:07 AM
RE: Australian Stock Market - PK1098 - 01-01-2018, 05:11 AM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:21 PM
RE: Australian Stock Market - Cane Toad - 01-01-2018, 10:29 PM
RE: Australian Stock Market - Tail Gunner - 01-01-2018, 10:38 PM
RE: Australian Stock Market - Cane Toad - 01-01-2018, 11:00 PM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 12:02 AM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 05:48 PM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 06:13 PM
RE: Australian Stock Market - Tail Gunner - 01-03-2018, 03:39 PM
RE: Australian Stock Market - Cane Toad - 01-03-2018, 07:38 PM
RE: Australian Stock Market - Tail Gunner - 01-03-2018, 07:50 PM
RE: Australian Stock Market - Roardog - 01-10-2018 09:40 AM
RE: Australian Stock Market - Tail Gunner - 01-10-2018, 11:07 AM
RE: Australian Stock Market - Roardog - 01-10-2018, 09:04 PM
RE: Australian Stock Market - Tail Gunner - 01-10-2018, 11:12 PM
RE: Australian Stock Market - Cane Toad - 01-12-2018, 06:26 AM
RE: Australian Stock Market - Tail Gunner - 01-12-2018, 11:25 AM
RE: Australian Stock Market - Tail Gunner - 01-12-2018, 11:38 AM
RE: Australian Stock Market - PK1098 - 01-01-2018, 03:22 PM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 12:36 AM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 01:37 AM
RE: Australian Stock Market - Cane Toad - 01-02-2018, 02:45 AM
RE: Australian Stock Market - Tail Gunner - 01-02-2018, 12:45 PM
RE: Australian Stock Market - Mig Picante - 01-03-2018, 11:33 PM
RE: Australian Stock Market - Bucephalus - 12-10-2018, 06:47 AM
RE: Australian Stock Market - Blue Streak - 11-19-2018, 07:12 AM
RE: Australian Stock Market - Mig Picante - 12-10-2018, 08:19 AM
RE: Australian Stock Market - Mig Picante - 12-10-2018, 06:35 PM
RE: Australian Stock Market - Blue Streak - 01-15-2019, 06:15 AM
RE: Australian Stock Market - Mig Picante - 02-11-2019, 08:47 AM
RE: Australian Stock Market - Mig Picante - 02-19-2019, 08:54 AM
RE: Australian Stock Market - BigTedSven - 02-21-2019, 02:33 AM
RE: Australian Stock Market - Mig Picante - 04-14-2019, 06:30 AM
RE: Australian Stock Market - TDevil - 04-14-2019, 07:29 AM
RE: Australian Stock Market - Tail Gunner - 04-19-2019, 12:24 AM
RE: Australian Stock Market - Mig Picante - 04-20-2019, 03:11 AM
RE: Australian Stock Market - Mig Picante - 04-21-2019, 04:06 AM
RE: Australian Stock Market - BigTedSven - 05-21-2019, 09:47 PM
RE: Australian Stock Market - BigTedSven - 05-21-2019, 09:48 PM
RE: Australian Stock Market - Tail Gunner - 05-21-2019, 10:00 PM
RE: Australian Stock Market - Bogart - 05-22-2019, 10:54 PM
RE: Australian Stock Market - Mig Picante - 05-24-2019, 07:16 AM
RE: Australian Stock Market - BB1 - 05-25-2019, 02:31 AM
RE: Australian Stock Market - outback - 05-25-2019, 02:33 AM
RE: Australian Stock Market - Mig Picante - 05-25-2019, 03:51 AM
RE: Australian Stock Market - BB1 - 05-27-2019, 06:38 AM
RE: Australian Stock Market - BB1 - 06-10-2019, 06:54 AM
RE: Australian Stock Market - UnW - 05-27-2019, 07:16 AM
RE: Australian Stock Market - Mig Picante - 06-04-2019, 08:36 AM
RE: Australian Stock Market - BalanceLife - 09-08-2019, 06:18 AM
RE: Australian Stock Market - Mig Picante - 09-24-2019, 07:05 AM

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