1. I’ve started a paper trading journal, simply to document the reasoning behind any moves I make in my portfolio. It’s a surprisingly good way to have to articulate a position: what’s the strategy, what motivated it. Quite often, it’s initiated by some reading or discussion I’ve done. To be honest, much of my investing is not truly quantitative or based on fundamental analysis, even though I’m steadily hoarding more and more unread “Analysis of Financial Statements” textbooks, in the event that flammable materials become scarce. It’s almost talismanic, my need to pore over these strategies and then not actually apply it to most of investing. And in retrospect, some of my biggest scores have been almost completely random, or motivated by the flimsiest of rationales. I’ve been reading Mauboussin’s book More Than You Know, a collection of some of his old essays, and there’s a good quote about how it’s possible to do well investing even if you don’t adopt a smart methodology, but that the odds are against you over time, so it’s quite possible that if I don’t shape up (hence the trading journal) I could be a big ol’ washout.
2. Not really related to investing, but sort of on the “I’m a cheapskate” tip, someone really needs to start a “cheap wine blog” based out of British Columbia. I’m not that someone, but I’m cheering you on, nameless potential wineblogger! I’m enjoying stuff like this blog, but frankly when you’re sticking to the BC Liquor Store, you’ve got a limited selection to work with.
May 13, 2008 at 7:00 am
I agree with you on the “How to Read Financial Statements” stuff .. I do the same thing. (collect the books and never really read them) Congratulations on using the word “talismanic”; it is only the second time in my life that I have seen it used. When I was about 10 years-old, I saw it used in a comic set in medievel times and my Dad made me look the word up.