There is quotation about the individual investor being able to beat the institutional investor due to agility.?
Posted by admin in Finance Monday, 17 October 2011 17:42 3 Comments
It compared the individual investor to a small agile boat and the institutional investors to large ships. I’m looking for the wording and the person who said it.
Ben Graham in his book “The Intelligent Investor” made such claims but I don’t think the wording was a memorable one or two liner. I read the book from the library so I don’t have a copy handy.
This quotation though metaphoric – attracts the brain string – but has no significance in real sense Rather i could say its vague .The individual investor never be able to beat INSTITUTIONAL INVESTOR due to paucity of fund intended to be invested for recovery – or to adjust the losses by “Bottom Fishing while the stock goes down and needed to be average the price so as to match with down ward trend. Wait till it regain the price on upward trend to recoup profit trade from to overcome lean period .
This aspect does not fulfill for Individual which at times get mentally fraustrated due to non availability of fund while need arises when the script goes down for un-forseen reasons though technically sound with back history .
Investing today.
Not so easy to make money. Example if you are an American investor you have a 6% return on your money per year. Not so bad you think. The biggest problem is how much is the real inflation per year? 3%,5%, 7%, or even 10% and could be even more. I have been following the exchange rate against the Australian dollar over a one year period, so now you would have to pay 17% more to buy one AUS dollar. Sorry to say the USA dollar is on a decline and will only buy less in the future. Only good investments today to protect yourself against inflation is with gold, silver, commodities or land. Always remember that paper money is printed and not dug out of the ground like gold.