Robbo's Investment Maxims & Thioughts...

Robbo's Investment Maxims & Rules

Been having & receiving quite a few emails... ...from some various Sharetraders; here at the PUB....regarding my own Investment Strategies.
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Firstly therefore....

The Disclaimer: --So then:.... while firmly emphasing, that these are not warrantable pieces of advice.... and are always just my own mere personal views ONLY..... and strictly to be read as just & only the personal views and thoughts of the author.... and nothing else...
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And so thought; that on that basis, instead of individually replying to each correspondent: I will maybe.....just wack a few:

"Robbo Investment Maxims & Thoughts "..... in this particular section of Sharetrader; for those who are mildly interested, they may or may not be of some smal Value or interest....:

-One final caveat is that: I do not apply all of these views all of the Time....but do try and consider them most of the time....

....>>>.... Maxim Number One (1)---- One Golden Rule is: Margin of Safety is Critical; which of course is based on my Own valued and estimated equity stock value eValuations ---

--- which, hopefully ensures I never normally need to lose money, if I am just patient enough to hold long enough....

--... The reason for this Critical "Must Apply" -- Maxim is thus:

----We can all hopefully adduce, that if we crystalize/realize a loss of, (for example) : say 15% on a stock "Investment A" ... of: 'x' $ , then we have to make "15% plus x" to recoup our crystalized loss on the previous Capital which is now, for all time, lost on out incurred losses ....which we bear in the previous loss taken on Share "Investment A"......

-- ie: a 15% loss on $1000 on "Investment A"-- takes the precious capital back to the lesser amount of $850.

That part is easy to remember and understand...

What sometimes slips the 'ol mind ...... is that;

-- If we then re-invest that lesser amount of $850; back into another different share -- "Investment B"; - then we have to get//achieve a 17.6% Gain on the now $850 to: "just get even" ....

--- ie: to get back to just square one; of recouping our capital of $1000 .... we now need not just 15%......but actually at least 17.6% gain the second time around....which is in effect, negative compounding on our capital........which is always yuk!! and ouch !!!

--and of course; if we took the multiple lost "inevitable broking fees"--'in and out' of both "Investment A" and "in and out" of the new "Investment B" we have now lost 4 broking fees costs to deduct from our precious $1000 capital....

--which now probably means we need an extra: 1-2 % on TOP of the 17.7% moving again UP; the necessary needed Gains, to achieve in "Investment B" return result gain, to achieve up to a figure now approaching the 19% mark....

---which is ONLY just to get & ...."break even"..... !! ...

- @ -- Hence why: Always Must must judiciously establish, a reliable intrinsic value based Margin of Safety ....always, based on a careful evaluation and careful valuation.... which is: Robbo's Maxim Number One(1)

Will get on with some other Investment maxims next time......

Regards,

Robbo :)

Maxim number (2)

Apart from:

---- the 'old Margin of Safety' and the emphasis; ...... on almost conducting "overkill" in terms of thoroughness and due diligence; on doing Independent Personal stock analysis in regards to the intrinsics, that actually fundamentally lie behind, and form the basis of the actual enterprise//business organization... that is represented by, and is meant to be behind the actual ASX code.....

---and of course.... doing, as far as is practical, massive deep Research, ferreting, digging, and checking and double checking ....before commiting any precious investment personal Capital, and/or Investment funds..... and ALSO doing, one's own: --- (..what I call..).... "so one can sleep peacefully, without fear or worry whatsoever.... and nice & soundly at night" ......yep that sort of level of personal Investment Intrinsic Stock mathematical and hidden value actual in depth Valuation....

--so as, to be able to rationally compare, what the Stock is really Worth Today.... and also of course, possibly what the stock ought to conservatively be worth; in 2-4 to 12 months time; with what is the present real time: that which is quoted "now" ASX stock Price; that the market is currently offering to sell the particlar stock at........

Apart from this.....

-- I admit to needing to remember and remind myself; of a Simple....(but easy for me to mindlessly forget....).... Imperative concept, ....which is encapsulated in a Quote; from one..... J.Paul. Getty.........which I have actually ......stuck, blue tacked.... and sticky taped .....onto my wall, in plain view, above my Personal Computer; which literally says:

........ The Billionaires Secret.

....@@ >> "The Essence To All Successful Investing…"

...... Is To .....

"Buy when…….... everyone else is selling, and hold, until everyone else is buying.

This is more, than just a catchy slogan. It is the very essence of successful Investment…."

“… If : You want to really, make money,--- the Big Money — then You Should Do What nobody else is doing.

@@ ** Instead, find those.…....... niches, that nobody else is filling. >>> Look for those, sometimes, undervalued and overlooked opportunities.

Quoted from: J. Paul Getty

....Kind Regards,

Robbo :)

Robbo,

I, like many others I'm sure, think your posts are invaluable!. I try to absorb everything you have to offer, so thanks mate and keep it coming! :) I would like to think that one day I too will have the respect of STer's, as you and P do. Waiting to get into MTN and DYL just had a nice run with PDN. U is the sh*t!.;);)

Gee thanx for those supportive thoughts/comments.... Studson [:I][:I]

-(..... Robbo's Investment Maxim Number 3.... )

To really make Money in Shares:

(1) Research patiently and laterally for unloved "diamonds"...
-- Be prepared not to find them TODAY....

--Once you have found them: DO NOT NOT NOT.... Buy the newly "discovered" stock straight away. That is...IMO.... a bit of a Big mistake.

(2) Then......After Pausing, waiting, assessing, watching the trading actviity and patterns etc etc....of that Stock...., and ONLY over about up to maybe approx: a month period... try and ascertain and FIND the true Trading Range......

(3) After Mega Due Diligence and Research, Then...and only after....AFTER..... Ascertaining and Finding the genuinely really & truly, Lower "End of the Selected Investment Stock's Trading Range" ....for The decided Upon & Well Researched & Objectively and Coldly Valued Conservatively....., Prospective New Investment -- (This particular phase, is a seperate, and very distinct phase from Phase Number (1) -- Being The seperate Research Phase...and this phase (3) can take upwards of 2-4 weeks....)....to actually ascertain.

Then,& only then ...... Buy slowly and steadilly at the Lower end of that range ....preferably without attracting undue notice to the Volumes of that Researched New Investment.... and acquire that new stock in that Company steadily and slowly, for one's own Portfolio of Investment Stocks....

--and THEN write down,& diarize and pin up Clearly..., the actual dates & prices the new Stock was bought at;.....(I put all of this on a Humungous White Board -- especially the Dates actually Bought..which I write out like:.... 23rd of March 2005---or whatever--(not just 23/3/05)....as in Investment "Time" only ONE Day ....can FEEL and SEEM .....like a Thousand Years !!! ....... and then can play negative silly mental tricks on one's own mind!!!) ....

--and so THEN: ..... ALSO IN big Black and Red Textas....>>>> diarize the "Pre-Set Profit Targets...."...(which I like to describe on my White Board for Motivation, that if I am patient, will be ---(my forward Earnings...)

(4) Next Step: Do Nothing, Absolutely Nothing but Sloth and extreme Idleness ..... and Hold.

---Then Continue to Hold..... Until pre set Targets are Met....

-- Important, so as to be able to have the patience to HOLD; to ....IMO....Prepare a plan to have one's fantasies, thoughts and emotions and energies, diverted & channelled into other seperate Interests:--- to do something else for the next 10-15 months...and not to think about the Actual state of the Investment TOO much....

It helps me: to.....

--** Have a sign on my Computer: "Robbo,.... You cannot Kiss All The Girls...."

To make good consistent money in shares and stocks, ...... (IMO...and my experience....and from my diary notes....) .....no matter EVEN, if you see another stock resembling: King Solomon's Treasures and absolute Proven Infinite Gold Mines; that is curently, "Going for a Ridiculous Bargain" of only say: 11 cents, you must not, not, not, not..... be tempted to buy this "other"...King Solomon's stock...

--Instead; --- IMO.....You must allow your own Iniitial Investment to mature 200%...and you must not sell... "in and out" (this is disastrous) of your own Excellent Investment, and be a smartie....and try and "trade" your Own INvestemnt on the tempting "peaks and troughs" ...

--The Aim: is instead, just to wait and await the 200% Increase....

-- IMO.....All you will mainly achieve, by "chopping and changing" and..."trading in and out" of your "Well Researched and Intrinsically Valued Favourite": is to drive UP and Up your average "Buy Price" ....and you will therefore reduce seriously your chances.... and you will therefore probably sadly not THEN; get your Good 200% Increase.... whichm is your Good Deserved Aimed For 200% Gain...

-Even if your share Goes down to 50% of what you bought it:...Relax......--

Where is the Crown Lager beer going to make an entrance, DavidRob?

ie, what I'm looking for is something along the lines of:

"Maxim Six: Always, always always, have at least a 6 pack of Crown Lager handy in the fridge case a choice you've made goes belly-up, or that stock you bought last week jumps 35% in an hour 5 days later, and you want to celebrate at 11 AM in the morning.

To summarise: One Six Pack in Fridge Crown Lager at all times"

Quote:

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quote:Originally posted by Packersoldkidney

Where is the Crown Lager beer going to make an entrance, DavidRob?

ie, what I'm looking for is something along the lines of:

"Maxim Six: Always, always always, have at least a 6 pack of Crown Lager handy in the fridge case a choice you've made goes belly-up, or that stock you bought last week jumps 35% in an hour 5 days later, and you want to celebrate at 11 AM in the morning.

To summarise: One Six Pack in Fridge Crown Lager at all times"

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How remiss of me PSK.... And now you've spilled the Beans, coz that IS the Big Secret....

Regards,

Robbo:)

Robbo, I like your personal disclaimer (do your own research, just my thoughts etc etc), thought you might like this, was on a junk mail I received, the longest disclaimer I have ever seen, a real beaut!

Quote:

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G'day placebo,

Love It: Must Cut & Paste That !!

Also, Placebo, do love your Goonish quote from Spike!!

Went to see Spike once do a solo Performance Vaudeville Act, in Albury NSW of all places, and he had us all in total stitches, and Guess what..??

He had not even spoken a word, just looked at us, the audience, with those mesmorizing impish eyes of his!! :):) ...What a Legend !!

Spike is no longer with us now sadly, having retired in Woy Woy NSW, and he unfortunately passed away several years ago, but I still have, ...... & gratefully enjoy The Goons and Spike, on CD !

And there is profundity, wisdom and humilty, in the actual Spike quote which you selected as well Placebo...

Have a Good one Placebo, ...from ALL of Here At The PUB.. ;)

Kind Regards,

Robbo. :)

Cheers Robbo :)

have to say, I had no idea Spike retired to Australia, odd where people end up. So was he `Aussie Spike' like `Aussie Joe' Bugner?

I'm not old enough to have seen him live :D, best I can recall is grainy black-and-white footage of on-stage radio broadcasts...

"Neddy??"

"He's fallen in the water!"

More of a Python man meself. Was delighted to see on a recent visit to Oz you can now get Holy Grail, Meaning of Life and Life of Brian in a 3-DVD pack. Ah the wonder of DVD! And of course, I'm a great fan of most anything thrown together by Ben Elton and Richard Curtis (particularly like the Young Ones and the Blackadder series).

Great stuff.

All the best to all at the pub Robbo!