Investing Is More Luck Than Talent

Re:Investing Is More Luck Than Talent by valuearb on Saturday January 21, 2017 @02:07PM (#13451509)

Speculation is the purchase of investments where you don't have a clear idea of the value of the investment, and are gambling on the direction of the market price.

Actual investment is usually called "value investing", you purchase assets at a substantial discount to their intrinsic value and wait for the market to recognize that value. True value investing is rarely practiced on Wall Street because Wall Street is mostly about the latest fad and charging fat fees to the uninformed. And when Wall Street firms tout themselves as "Value" they are typically just buying low PE stocks, which isn't actual value investing at all.

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Re:Investing Is More Luck Than Talent by senthil_rajasek on Saturday January 21, 2017 @02:15PM (#13451564)

You should quote your sources. These are ideas from Ben Graham.

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Re:Investing Is More Luck Than Talent by jabgrabdthrow on Saturday January 21, 2017 @02:20PM (#13451588)

You have to quote your sources for the concept of "value investing"? Did I miss a joke?

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Re:Investing Is More Luck Than Talent by senthil_rajasek on Sunday January 22, 2017 @12:41AM (#13453796)

"value investing" gets thrown around a lot without proper attribution. It's a very specific investment style proposed by Ben Graham. The reason why I like attribution is a) I know that it's the specific thing being talked about b) It gives credit to the originator of the ideas ( especially in the investing circles) since investing is an area where a lot of charlatans like to take advantage of gullible people by looking smart.

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Re:Investing Is More Luck Than Talent by grzm on Saturday January 21, 2017 @02:19PM (#13451581)

I think the terms used above are now pretty well known to those who know something about investing. While it might add information to include their names, I'm not sure if attributing Ben Graham and David Dodd are necessary at this point.

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Re:Investing Is More Luck Than Talent by JumpCrisscross on Saturday January 21, 2017 @02:32PM (#13451639)

> the terms used above are now pretty well known to those who know something about investing

The speculation-investing definitions where "investing" is defined as "value investing" is specific to the Graham-Dodd school of thought. These are not generally-accepted economic definitions. For example, Index investing isn't "investing" per Graham-Dodd.

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