Value Averaging - Michael E. Edleson

[John Hjorth]

A couple of days ago I ordered this book, available at Amazon here. [Personally, I ordered the book at saxo.com, to save a bit money on p&p and perhaps also a bit import VAT.]

 

Somehow, I consider it a flaw in my selfeducational journey into investing, that I haven't read this book before. I think I should have read it about 6 years ago. So please consider me absolutely unopinionated on the matter and concept. There are quite some sceptical comments about the concept and method in the customer reviews on Amazon.

 

I guess I'm just curious here, and wan't to learn about it. Perhaps I'm even fooling myself, trying desperate to find a way to excuse myself for building a modest position in LVMH over time, thereby in reality grabbing for straws.

[vinod1]

Read it eons ego when I was an Efficient Marketeer. It is more for people who index so although interesting for us finance geeks, you might not find it applicable for your own portfolio. There is a critique of the technique by a researcher. You should read that too.

 

I think reading "The Four Pillars of Investing" which is mostly about Indexing would be a lot more helpful. It should be required reading for value investors. I mention this since you bring up "selfeducational journey into investing".

 

Many value investors get overdosed on Buffett and Graham. They do not pay enough attention to the other side. This book does as good job as any of explaining from an efficient market perspective.

 

Vinod

[John Hjorth]

Thank you for the advice, Vinod,

 

I'll find that research paper and post a link to it here. I think I need to read the book first and then read the research paper afterwards, to get the right understanding of the technique.

 

And thank you also for the advice of reading "The Four Pillars of Investing". [i haven't read that yet.]

[Jurgis]

I think reading "The Four Pillars of Investing" which is mostly about Indexing would be a lot more helpful.

 

Partially OT: I just looked at Kindle excerpt of "The Four Pillars of Investing". The author in chapter 1 makes the same point about survival bias and hindsight bias that I made about Buffett's claim this year that it was "obvious" to everyone that US will win the WWII and therefore investing in US markets in 1942 was a gimme. Author has some good examples. 8) Even if one thinks that this lesson does not apply to US now, it might be a good one to keep in mind when proclaiming bright future for countries X, Y, Z and terrible future for countries W, T, U. These are not as knowable as they seem in hindsight.

[John Hjorth]

I received the book from saxo.com today this morning.

 

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It's just not time for concentrated reading now during day hours. I'm using time on my roses and dividing hostas. May 2018 has set record ever here in Denmark [since measurements started] with regard to hours with sunshine!