Saturday, February 16, 2013

Betting the unknown

I am talking about investment as a tiny minority shareholder:

If we done our homework, by reading news, forum or company annual reports, most of us knows the fundamental of a company or industry. No matter how well you dig into detail related information, there is always somebody else knows better and act faster. And that somebody is really a lot of experts, and the experts comes from all over the world. It is almost impossible to outrun their wit.

If you want to outperform the market, what you can do is betting the unknown. The unknown is really the unknown, either is a breakthrough, secret innovation, future business, where even the top executive is unsure of the success. Or you can form your own believe or idea where majority of people will not believe. That means you are silly in the eye of public. Most of the time, you are. Even you are proved right, it is hard to turn around people view of your silliness. If you got it correct once or twice, you may be lucky. If you got it wrong, it is expected. So between the 2 ways: betting the unknown, and be a contrarian, which way is better to outperform the market?

Anyway, i believe its better to continuously learn, dream, set your own trend and believe, refine it. It is better worth to bet your own idea and prove it right. Investment is just one of an exciting process for me to learn about the world.

No comments:

Post a Comment