Google valuation, part 4
John Hussman chimes in...
For a long while now, John Hussman's obvious intelligence has made a positive impression on me -- (I cannot say the same, however, for his track record).
Here's the thing: you can choose to play up your intelligence and buy what the market does not want to own (in a bid to showcase the differential advantage you offer) -- and your returns will measure that under-performance. Or you can down-play your intelligence and buy what the market, in fact, does want to own. Again, your returns will measure this success. (Or lack thereof -- there are other components to successful investing!)
Not having purchased Google/GOOG, Hussman has given up $200 profit in ~9 months; I daresay he has no other stock in his portfolio that has a similar rate of return, or even close to it. Yes, with out-sized performance comes out-sized risk -- which is a decision each of us must make in advance for our portfolio; i.e., how much risk do we assume to achieve the desired (rate of) return.
For a long while now, John Hussman's obvious intelligence has made a positive impression on me -- (I cannot say the same, however, for his track record).
Here's the thing: you can choose to play up your intelligence and buy what the market does not want to own (in a bid to showcase the differential advantage you offer) -- and your returns will measure that under-performance. Or you can down-play your intelligence and buy what the market, in fact, does want to own. Again, your returns will measure this success. (Or lack thereof -- there are other components to successful investing!)
Not having purchased Google/GOOG, Hussman has given up $200 profit in ~9 months; I daresay he has no other stock in his portfolio that has a similar rate of return, or even close to it. Yes, with out-sized performance comes out-sized risk -- which is a decision each of us must make in advance for our portfolio; i.e., how much risk do we assume to achieve the desired (rate of) return.
posted by David M Gordon | 5:53 AM
<< Home