Strategy Vs Tactic - Mal Maiden's Final Column for Fairfax

Interesting view from a journalist who has spent his career (from 1973) reporting on the sharemarket. The wisdom contained in this article will likely be missed by many. And as usual you get the typical nutter in the comments section cherry-picking dud stocks in an attempt to discredit Maiden's view, they missed the whole point of the article. However in my view it contains a powerful message for business and investors!

The key to making money in the markets: buy, hold ... and wait

The key to making money in the markets: buy, hold ... and wait

Well said Malcolm. If you have followed your own advice retirement should be spectacular.

 

Yep, real "peanut gallery" comment that one. There are plenty that will never get it. Picking stocks that would never pass through a quality filter, dodgy roll ups and scams as to why long term investing doesnt work, and also that "its different this time" because of "change" etc, with no 2nd order thinking whatsoever.......Fine with me

 

Hold and wait aren't really steps, just two different ways of saying do nothing.

So the key therefore is to buy (the right thing).

Interesting reading, comments are always good reading too if only to learn by bad examples.

 

People often expect to much from short articles. I'm sure if space permitted Mal would have gone into other factors such as quality and more on diversification which he mentioned etc.

There is deeper meaning in this article than what is first apparent.

As for "long term" Strategy quite often simple is best. In business just like in investing it is very easy for short term tactics to steer one off course.

 

I've noticed how there are lots of very clever people that manage to write tid bits that allow even a simple fellow like me to feel confident in what I'm doing. At times I've even felt like I understand some of the deeper stuff they hint at. Usually at those times I do a little more reading and realise I know bugger all.

I am glad that the buy quality LICs and ETFs is so simple even I can manage it.

 

Simple but not easy! I've tried to get my pops to come around but he's too caught up in chasing past returns of hotshot actively managed funds to understand the simplicity of a growing passive income stream.

 

Once I accepted I'm no expert it became really easy to accept the steady approach and not chase a big win. Realising that the hotshot well paid mangers aren't super geniuses either was a bonus.

It is hard to accept you're nothing special.

 

An extremely intelligent post.

Take the following quote:

For the vast majority of us investors the sooner we can accept this, the sooner we can start becoming successful!

It's a joy to see members here posting great stuff like this. Might sound boring and simple, but sticking with it is easier said than done! The desire to get rich quick through short-term Tactics (eg trading) will often fail where simple long term Strategic investment in index funds and older style buy and hold diversified LICs will enable the "know-nothing investor" to succeed spectacularly well!

Not advice.