Uploaded August 2024 | Updated September 2026, 1 week ago
Session Description: In this session, I start by describing an investment philosophy as a set of beliefs about market behavior and misbehavior which translate into market mistakes that you try to exploit as an investor, and go on to contrast investment philosophies that are odds with each other - value versus growth investing, momentum versus reversal trading, market timing versus stock selection. I then look at how different investment philosophies lead you to companies at different stages in the life cycle, and why you should be aware of these links, as an investor.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch14.pdf
Exercise:
a. Are you an active investor?
b. If yes, what types of mistakes do you think markets make, and why? If no, why not?
c. What investment strategies do you use (or plan to use) to take advantage of those mistakes?
d. What are the weakest links in your investment philosophy/strategies?
e. Do you have an investment track record? Have you earned more than you would have as a passive investor (buying index funds)?
Session Description: In this session, I start by describing an investment philosophy as a set of beliefs about market behavior and misbehavior which translate into market mistakes that you try to exploit as an investor, and go on to contrast investment philosophies that are odds with each other - value versus growth investing, momentum versus reversal trading, market timing versus stock selection. I then look at how different investment philosophies lead you to companies at different stages in the life cycle, and why you should be aware of these links, as an investor.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch14.pdf
Exercise:
a. Are you an active investor?
b. If yes, what types of mistakes do you think markets make, and why? If no, why not?
c. What investment strategies do you use (or plan to use) to take advantage of those mistakes?
d. What are the weakest links in your investment philosophy/strategies?
e. Do you have an investment track record? Have you earned more than you would have as a passive investor (buying index funds)?
