tag:blogger.com,1999:blog-2949218657849719987.post5519270049102188538..comments2024-02-10T10:35:20.557+00:00Comments on My contrarian adventure: End of year overview of my contrarian stocks 2013Fredrik von Oberhausenhttp://www.blogger.com/profile/10924238593055161520noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2949218657849719987.post-57205058206240925052013-12-17T19:33:17.424+00:002013-12-17T19:33:17.424+00:00Yes, i just got out my copy of 'One up on Wall...Yes, i just got out my copy of 'One up on Wall Street' and on pg 286 Peter Lynch says: 'you won't improve results by pulling out the flowers and watering the weeds'. Very true. Now we just have the trouble of working out which shares are 'weeds' and which ones 'flowers'! n<br /><br />Keep on thinking and working...and good luck. Chris Baileyhttps://www.blogger.com/profile/14641125703755041957noreply@blogger.comtag:blogger.com,1999:blog-2949218657849719987.post-34184660586661970602013-12-16T22:32:43.465+00:002013-12-16T22:32:43.465+00:00Thanks for your great comment Chris Bailey!
Since...Thanks for your great comment Chris Bailey! <br />Since you have been working with investments for 17 years then I am indeed a toddler in comparison to you!<br /><br />Hmmm... I fully agree that a share that is down 90% is a disaster that hurts any portfolio much more than what I had expected and even worse when adding good money to bad.<br /> <br />I listened to too much information in the beginning and had problems to sort out what was important. Which is why I still today are trying different ways and approaches. <br /><br />I think that the words of Peter Lynch are excellent and this I quote freely from my mind so it might be slightly wrong: "skip the weeds and water the flowers".<br /><br />I have no data about it but it sounds as if he just left the rotten stocks and if they went belly up that was it and with the good ones where the fundamentals improved I guess he even bought more stocks and actually increased his buy price but he did so in a healthy company with large potential and improved fundamentals... <br /><br />Still I am not sure he actually did that but I am thinking about this and I will see what I can do with this in the future. Especially if one of my bad stocks actually manages to turnaround. <br /><br />At least it sounds more logical then to buy more of a company that are going downhill not only in share price but maybe also in the fundamentals which maybe you as a small investor have not even been able to catch on to which the bigger investors have managed to do.<br /><br />I have therefore decided not to have a rule that kicks in during share drops and I am even thinking about doing the inverse which today means to buy more MüRe and ABF to try to water the plants. <br /><br />It Is logically correct but emotional a tough nut to crack which I need to find out why I feel like that before I can change my investment style slightly.<br /><br />I am very glad that you read my blog and I hope to receive excellent comments from you also in the future to help me and other readers to improve as investors.<br /><br />Thanks!Fredrik von Oberhausenhttps://www.blogger.com/profile/10924238593055161520noreply@blogger.comtag:blogger.com,1999:blog-2949218657849719987.post-79456367427596439692013-12-16T20:27:34.637+00:002013-12-16T20:27:34.637+00:00Am enjoying the daily updates and especially this ...Am enjoying the daily updates and especially this post. It is always good to review investment lessons learnt, as this is the way any of us become better investors. <br /><br />It is over 17 years now since I originally entered the investment industry. The most important lesson I have learnt is to be able to sleep at night with investments. For me this has always been generated via original work and an understanding of valuation and potential catalysts (not dis-similar to yourself, which is probably why I enjoy reading your output). What is that old adage again? 'The harder I work, the luckier I get'. Very true. On this basis you have a great chance of being successful on your quest. <br /><br />Don't beat yourself up about Asian Bamboo - it is far better to learn such lessons earlier than later. My personal suggestion would be that if you wish to add to an investment after an x% fall (I think you cited 20%) then if the share falls another 20% from this new level, then it must be sold. What ruins investment performance over the longer-haul are those shares that are down 90% from an original purchase price. By definition many have moved through an interim level of down 40%, down 50% etc. Nevertheless, you have identified some good winners and, most importantly, time is on your side. <br /><br />Keep up the good work...and anyone reading this should themselves read (if they have not already) Peter Lynch's 'One up on Wall Street'. One of the best investment books written and - as this website shows and I entirely endorse too - a source of very practical advice about what to look for and why. <br /><br />Chris Bailey<br />Chris Baileyhttps://www.blogger.com/profile/14641125703755041957noreply@blogger.comtag:blogger.com,1999:blog-2949218657849719987.post-51378565177343869532013-12-16T09:13:25.128+00:002013-12-16T09:13:25.128+00:00Dear Jan,
Interesting article that you passed on!...Dear Jan,<br /><br />Interesting article that you passed on! Thanks! I hope that Kernel will not get into too much trouble with such a big competitor...<br /><br />Please Jan, make sure to make your own analysis of the company before you buy a part of it.<br /><br />I have however realised, over the short time that I have been writing this blog, that my readers are many times much better investors than me and have been doing it for a much longer time so I am sure that you make your own control of it.Fredrik von Oberhausenhttps://www.blogger.com/profile/10924238593055161520noreply@blogger.comtag:blogger.com,1999:blog-2949218657849719987.post-33099583853131453082013-12-15T20:46:02.187+00:002013-12-15T20:46:02.187+00:00Hi Frederik,
Thanks for the update! Your Kernel i...Hi Frederik,<br /><br />Thanks for the update! Your Kernel investment has inspired me, I will be buying those shares soon. I think and hope it will prove to be a an investment with great foresight.<br /><br />http://www.businessweek.com/news/2013-06-10/dupont-opens-ukrainian-seed-processing-facility-to-meet-demand<br /><br />All the best,<br />JanJannoreply@blogger.com