|
|
 |
 |
|
|
Investment management is easy, bafflingly easy. After three years in the game, one tends to think they know everything there is to be known...but after thirty years, we tend to think differently.
"Value investors" try to achieve high returns by identifying and acquiring undervalued securities, based on the assumption that there are inefficiencies in the stock market and that stock prices fluctuates around their true values. The famous economist John Maynard Keynes, on the other hand, relied more on a psychological reading of stock market movements to take advantage of such fluctuations. Others, such as Warren Buffet, tend to rely heavily on their insight about current and future economic value. All these three different approaches are attempts to assign a true value to a security and imply that the stock market is not always efficient.
However, others tend to believe that markets are efficient. By emphasising market efficiencies and risk, modern portfolio theorists attempts to shift investors from value analysis to risk diversification.
At Prime Value, we are conscious of the existence of these differing views on investments and their ramifications for investment policies and decision making. Indeed, we strongly believe that fund managers should know about investment theories. However, we are also aware that you cannot produce superior investment results by knowing the theories only. We believe that investment is not just a matter of science and mathematics/statistics, but art and intuition as well.
|
|
|
|
|
|
|
|
|
|
|
|
|
