Saturday, August 20, 2011

Welcome to Renaissance Investor

In the world of investing, the loudest voices often drowns the most credible ones. I've spent years with open ears to words of confidence and shirks of tears, never knowing who I should really listen to. The screaming doomsayer will always get your attention first, but only the whispers of wisdom withstand the test of time. I will help you become a Renaissance Investor by showing you investing methods that work.

If something truly works, it should just plain work. The method should not draw doubt. If it is correct to do something, you should be doing it every time. Superstitions and excuses should not deter you from proper conduct. If you are capable of being successful at it, it should be something that you can understand. If there are people that are successful at it, there should be an agreement among all of the experts for every decision. If this something is real and true, you should be able to distinguish the experts from the newbies. I'm very skeptical when a self proclaimed expert did not get rich off what he was great at. Think about the investing strategies that you know. Do they really make sense to you all the time?

The purpose of this site is a selfish one. There is a lot that I don't know and a lot that I want to learn. It's not easy to find a needle in the haystack. Over the years, I've gotten better at looking for them, but I'd like all the help that I can get. I'm hoping that if I can bring you on my team, and give you the hints, tips, tricks, pointers that I've picked up over the years, then we, as a community, can find more needles together than any of us can alone.

I've found that most of us have learned all the wrong things. It's not because we're stupid. Humans are psychologically wired to find the loudest voice to be the most convincing. I'd like to help you unlearn all the evils that you've been taught. For some of you, this will be a refreshingly reinforcing. For most of you, this is a real Renaissance. Prepared to be enlightened! I'd like to welcome you to the world of value investing. My mission is to help you break down investing into what it really should be - simple. Most, if not all, of the things I say here would get the seal of approval from the Oracle of Omaha himself, Warren Buffett.

Now, for the disclaimer. Unless you win the lottery or you were born into royalty, wealth does not come without hard work. Since most of us were born allergic to hard work, it makes sense that only a small portion of the population is wealthy. Many of the incorrect stock picking methods that people use are chosen because they require the least amount of work. Take technical analysis for example. It requires very little learning and absolutely no understanding about the company behind the chart. You need not learn any accounting methods or look at numbers. So does this method work? Is it repeatable? Can you make the same decision every time an indicator fires? The things you learn here will require hard work. It may take a while before you can look at a financial statement and understand why the company is good or bad. However, the rewards of your effort will very noticeable.

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