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Global Value Investing |
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A multifaceted approach to value investing with stock valuation based on intrinsic value estimated from cash returns, appraised value of assets, and other facets of value. |
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HOT TIP
A simple easy way to get rich quick? Yeah, right! Also a costly and risky way to go broke.
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Gambling | Gambler's
Ruin | Games | Speculation
Saying:
Fortunate is he whose first speculation results in loss.
Julian Coolidge (1873 - 1954) [Upon proving that the best betting strategy for "Gambler's Ruin" was to bet all on the first trial.] "It is true that a man who does this is a fool. I have only proved that a man who does anything else is an even bigger fool." Howard W. Eves Return to Mathematical Circles (Kent Publishing 1987). Amazon.com
Definition:
Lottery, n. A game played by someone bad at
math.
Games are entertainment. Games are short duration and thus simulate trading, not investing. Game money is not real money. Game rules, risks and returns are not market rules, risks and returns. Games don't include limit orders, commissions, margin costs, income taxes on dividends and capital gains, or the opportunity cost of player's time. Games benefit sponsors. Free trading games, like free drug samples, can lead to addiction.
Fact: Many day traders don't know what an option-pricing model is and may think that Black-Scholes is near Black Beach.
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