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Oracle of Ohio


Vish_ram
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These articles are great. You have to love them. He really digs into the fundamentals but doesn't know the names of many of the companies or what they even do. On the other hand, sure, these articles are total fluff but he isn't hurting anyone (well, other than the people reading it who think if he can do it so can they). I am sure he's one of the most popular guys in the retirement home.

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Looks like a momentum investor. In bull markets its probably pretty easy to outperform, but if he hadn`t this godsent idea to stay out of the market in 2008 he probably would have lost most of his outperformance/networth in that year. I am still thinking that its not a bad idea to combine momentum and value investing.

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The article kinda reminds me of market peak articles of 2000 and 08, Where normal people making good returns  at the same time a rising market with little or no research

 

I don`t think that its possible to outperform the market without research. Its just not the same research a value investor would do.

Read this to understand: http://www.aqrindex.com/resources/docs/pdf/news/news_case_for_momentum.pdf

 

Its just that a long only momentum investor will get hit hard in a bearmarket. The momentum premium in a bull market is stronger than the value premium, so its possible to outperform more with a momentum strategy than with a pure value strategy during that time.

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He is quoted as saying: "...i only invest in aggressive growth stocks..."

 

Wow. Intereting anecdote in regards to sentiment when a national publication is highlighting that as the backbone of a 77-yr old's successful investment strategy.

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