1. General Dwight D. Eisenhower, former US President, once said, "There is no victory at bargain basement prices."
2. As there's no "objective" system for estimating correct value of any business, the original "bargain" price may not actually turn out to be a good bargain.
3. While a saver gets lured by bargains, likes icons and views things ideally, an investor combines return, risk, liquidity and duration to make informed choices and "owns" his actions.
4. The "concept" of buying quality stocks that are undervalued is a myth, as defining the words "quality" and "undervalued" is in the eye of the beholder.
5. For a retail investor, the job and effort of identifying "bright companies", and the "real gap" between price and value of their stocks, is best left in the hands of an experienced fund manager, whom he can never replicate in the long term.
2. As there's no "objective" system for estimating correct value of any business, the original "bargain" price may not actually turn out to be a good bargain.
3. While a saver gets lured by bargains, likes icons and views things ideally, an investor combines return, risk, liquidity and duration to make informed choices and "owns" his actions.
4. The "concept" of buying quality stocks that are undervalued is a myth, as defining the words "quality" and "undervalued" is in the eye of the beholder.
5. For a retail investor, the job and effort of identifying "bright companies", and the "real gap" between price and value of their stocks, is best left in the hands of an experienced fund manager, whom he can never replicate in the long term.