Mephistopheles

Thanks for sharing. Yea I read this article recently and it makes a lot of sense. Just, I have to work on enjoying my left brain. I know I have all of the temperament traits that he talks about in the article. So I think it's a matter of sitting down and being able to work through the calculations for me.

Why do you say so?

Thanks for your reply. I'm glad to hear that I'm not the only one who has trouble following detail. I actually used to work on Wall Street, in equity research, but I hated it the work so much that I quit. But it wasn't until after that I discovered the extent of value investing, and so I am trying to figure out whether it is right for me. Btw, I read your blog once in while, but I'll be sure to check it more often now that I know that we think similarly.

I decided to make this thread in order to get opinions on this topic from fellow value investors. I'm a relatively new investor, and I consider myself right brain dominant. My questions are as follows: is it possible for me to have a successful and enjoyable career in value investing? Are there others here who consider themselves right brain dominant? What about famous value investors, such as Buffett, Munger, Berkowitz, Klarman, etc? How would you describe their left vs. right brain dominance? I've researched a little on this topic, but I think that some of the common perceptions on this issue are misleading. One idea is that right brained people tend to be more emotional, and therefore cannot be successful investors, as they will succumb to fear and greed too easily. I disagree with this notion. I sincerely believe that my temperament is a major advantage for me as an investor. I have taken advantage of severe equity mispricings over the last few years, by buying when the rest of the world is fearful. For example, I've made significant money by buying Wells Fargo in March 2009, BP in June 2010, and more recently - BAC late last year. I've trained myself well to be fearful when others are greedy, and greedy when others are fearful. But that's where my advantage ends, at least for now. Although I read 10-k's and 10-q's as much as I can, I have a hard time staying focused and forming an opinion. I generally get lost in the dry information that is presented in these filings. I also hate net-nets because of the pure quantitative analysis required. I've realized that I like situations in which there are a lot of headlines and emotions involved, even if the emotions aren't my own. Again, I site BP and BAC as those situations. They just seem more colorful to me, and reading about them in newspapers and magazines helps me form a clear picture in my head, whereas I get lost combing through annual reports. I also enjoy the creativity involved in special situations. How many times has there been an investment opportunity as the result of a major oil spill? I liked the BP situation because it wasn't a part of my routine to study the long term consequence of oil spills, the Gulf ecosystem, and the Clean Water Act. Most of this I was able to understand by reading dozens of newspaper and magazine articles, as well as analysis by Whitney Tilson. It was something unique and unexpected, and so it appealed to me. I've also considered the possibility that I don't enjoy the routine reading of annual reports simply because I'm new, and don't understand them well enough. I understand that there is a major learning curve required there. Contrarily, I love reading the writings of value investors including Buffett, Munger, Watsa, Klarman, and more. So you see why I can't decide whether this career is right for me? I hope I haven't lost anyone here. Thanks for reading. I hope this thread generates discussion.

From what I read, the general sentiment on this thread is that WSJ is not extremely important and reading a lot of newspapers/magazines is not necessary to be a successful investor. But then what do you guys think of Buffett and Munger's opinion that newspapers are essential, and that they each read six daily in addition to the magazines and various industry publications that Buffett reads (Oil & Gas Journal, Insurance publications, etc.)? And how does reading all of that compare to reading your 10-k/10-q/8-k/conference calls? What would be the ideal way to allocate our time as investors, and why do Buffett/Munger emphasize on newspapers? (Of course, they read a ton of annual reports too.) I would love to get opinions on this, as I am a fairly new investor, and often get lost with the plethora of reading material that is available. :)