All good guys lets all settle down. End of the day we should be on the same team vs the big hedge funds I rekon.
We are all here to learn and become better investors imo. Anywho, believe it or not, I am actually a member of Intelligent Investor. Recently got on it this year and thought I would give it a go. I have read quite a lot of their articles, and its pretty sound advise. I also like their podcasts. However, I have noticed they have not updated that for a while??
I personally found Benjamin Grahams book quite advanced so I put that down for the moment. I did of course grasp some a fair bit. One point I really liked was the 25% vs 75% split. Depending where you felt the valuations were in regards to the equities market and the"cycle".
Benjamin Graham seemed to not encourage 90%/100% equities vs 10% cash unless your a pro and you really know what your doing. Correct me if I am wrong?
Anyway, in regards to II I rekon its pretty good. Depends on your rules of course. You can use it as a good guide, i mean these guys get paid to do quite a bit of research and they interview CEOs etc, something we probably dont get the time/or opportunity to do. In my humble opinion, if you stick to companies with decent market caps and you chuck their ideas in your watchlist and wait till they go down which provides even MORE of a margin of safety than their own margin of safety it can work wonders. But of course, the flip side is you could miss out. Depends how patient and detatched you are. Again, this financial year, I will no longer touch small caps. There was a poster on HC, I forget his name, but he seemed to beat the market consistently by investing in the ASX10. Although, he did have large capital to invest so even small % moves in a year would give him a years worth of salary. Anyway, that was his game plan, and it worked.
I do have those moments where I want to go hard when opportunities present themself. For example, SGH, FMG, RIO. But lets face it, its really uncertain where these companies will be in the next 12 - 24 months and I for one do not have the expertise nor aptitude to invest in such companies. On the other hand, if a GFC Part 2 came around and WOW went down to $15-20, it seems like a no brainer for the LT.
Anyway cheers for all the responses and have a good night.
CHEERS!
(20min delay)