Great content and well-written as always! One can immediately tell when they stumble upon a product of a sharp mind, and I am truly impressed by your work. Two quick questions if I may -
1. Where do you acquire all this valuable knowledge?
2. Couldn't the shareholders dilute in order to increase their share size and prevent the takeover? Is it being considered by activists as a risk factor in the process of obtaining the majority stake (like in the case of Bernard Arnault vs. Gucci) or are there ways to minimize this risk?
As for the knowledge, I just like to learn and understand, I spend my day studying the best and evolving as an individual and investor, it is fun to me and researching, writing and sharing improves as time goes on.
Thank you for providing a window into your learning process and I do look forward to your 'Chat with Traders' interview and any other interview you might give. I admire the dedication; I'm new in the journey here and have been accumulating knowledge like this to prep my mindset for a long challenge in this endeavor.
To be very honest I hadn't read much about value investing before your blogs & it is opening a whole new world for me. At this point in your career, would you say that you combine Trading & Value Investing to maximize alpha? or you keep them separate??
The best value investing is done via a contrarian idea and entry.
At my core this is what I do with small caps and even mid and big cap active trading. I formulate an idea and manage my risk to maximize the trade. I think it gives me an edge over others because it leads to free alpha vs others. My understanding of panic, positioning and more gives me that edge over others.
I needed to make 6 figure decisions within a few seconds over years, now I get up to weeks to make these decisions.
The combination of active trading momentum, sentiment expertise and just the sheer amount of hits and tries I took over my career really elevate the expertise.
the best trades, entries and exits are when everyone is scared, panics or fomos. that is when the biggest mispricings happen. However keep in mind it does not mean it is without risk to enter, exit there.
Great content and well-written as always! One can immediately tell when they stumble upon a product of a sharp mind, and I am truly impressed by your work. Two quick questions if I may -
1. Where do you acquire all this valuable knowledge?
2. Couldn't the shareholders dilute in order to increase their share size and prevent the takeover? Is it being considered by activists as a risk factor in the process of obtaining the majority stake (like in the case of Bernard Arnault vs. Gucci) or are there ways to minimize this risk?
It depends on the board, the share structure as well as the plan by the protecting company.
Just diluting doesn't necessarily make it harder for someone to take over as it will drive down the price proportionally.
Often companies, private and listed are limited in their ability to dilute through an anti-dilution clause or a vote to issue new shares.
Diluting could also get you in trouble with other holders, turning them against the current board.
As for the knowledge, I just like to learn and understand, I spend my day studying the best and evolving as an individual and investor, it is fun to me and researching, writing and sharing improves as time goes on.
Thank you for providing a window into your learning process and I do look forward to your 'Chat with Traders' interview and any other interview you might give. I admire the dedication; I'm new in the journey here and have been accumulating knowledge like this to prep my mindset for a long challenge in this endeavor.
good luck!
To be very honest I hadn't read much about value investing before your blogs & it is opening a whole new world for me. At this point in your career, would you say that you combine Trading & Value Investing to maximize alpha? or you keep them separate??
The best value investing is done via a contrarian idea and entry.
At my core this is what I do with small caps and even mid and big cap active trading. I formulate an idea and manage my risk to maximize the trade. I think it gives me an edge over others because it leads to free alpha vs others. My understanding of panic, positioning and more gives me that edge over others.
I needed to make 6 figure decisions within a few seconds over years, now I get up to weeks to make these decisions.
The combination of active trading momentum, sentiment expertise and just the sheer amount of hits and tries I took over my career really elevate the expertise.
Will start focusing more on "Contrarian idea & entry" + "Understanding Panic" during my daily reviews. Thank a lot!!
the best trades, entries and exits are when everyone is scared, panics or fomos. that is when the biggest mispricings happen. However keep in mind it does not mean it is without risk to enter, exit there.
Thank You!! I genuinely Appreciate this!!