16 Comments

This was a great post. Thankfully the markets aren't efficient. Otherwise, we're wasting our lives.

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Aug 8, 2023Liked by Compounding Quality

Another great article CQ, Thank you, and I have to agree with you.

As a new investor i started a new small PF (22 Stks) using DCA for my daughter in July 2022 and was told many times about the bad timing, and to wait etc, but believing long term i should be ok with good companies, we just finished our first year, last month July 2023 and ended up with ~$40k & +27% after costs and fees so I am more than happy with that for Yr 1, especially when leaving it in cash would of cost me money through Inflation and loss of purchasing power.

Yes there were multiple +30% draw-downs and the road gets bumpy at times, but preferred to continue buying and to average down and for this year it paid off, time will tell long term, but with Bull mkts on average 65-75% of the time, I still feel the numbers are with us.

I don't think any theory can account 100% for our energetic human emotions in both directions when it comes to stocks, and history shows they are still the best investments long term.

Thanks again CQ, much appreciated, it's yr solid/factual info that helps to steady the boat.

Cheers Kev

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Aug 5, 2023Liked by Compounding Quality

CQ,

Many thanks for the highly informative post and the excellent advice provided on making the most of Mr. Market's opportunities. I hold the view that a significant portion of your readership (myself included) do not subscribe to the Efficient Market Theory. You are absolutely correct in highlighting the profound impact of human irrationality. Regrettably, the folly of our kind extends well beyond the realm of financial markets. : (

Have a wonderful weekend!

Warm Regards,

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Aug 4, 2023Liked by Compounding Quality

To conduct valuation you have to believe that markets are some what efficient, otherwise how else would the market realize the inefficiency?

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Great article, So whatever happens in the market is beyond the text book knowledge. Professor did not pick the note… amazing Insight 👀

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Aug 3, 2023Liked by Compounding Quality

Tha ks for the content just finished your ebook for the second time. And nog I starten screening and studying companies. Thans for the knowledge I hope In 30 years from now, it Will pay off.

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Aug 3, 2023Liked by Compounding Quality

Looking at long term chart of an index you can see the madness in the week to week / month to month and even year to year. But if you lay in the 200 day moving average line that looks rational.

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Great article! Many thanks. Do you mind sharing the names of your investment universe?

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