Post #3987 by mungofitch on the Mechanical Investing board

Investment Strategies / Mechanical Investing

Unthreaded | Threaded | Whole Thread (7)

Prev | Next

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 1

the thrill of trying to beat the market by 2-3% per year, and failing at it, is no longer there.

Again, I hear you.
The more times I read that, the funnier it is : )

Certainly the biggest insight I had many years ago, when I used a lot of different investment strategies, is: stop doing the ones that clearly don't work.
Since that's too difficult a goal, I revised it: at least don't allocate a lot of money to them!

I've made money with MI, but it hasn't been my best success for a long time. My annualized rate of return on daily dollars of capital at risk in Berkshire and Berkshire derivatives is something like 26%/year for just under 25 years. Partly from buying low and selling high (I'm slightly net short at the moment, kind of a short strangle), and partly from the leverage embedded in calls.

Jim

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (7)

Prev | Next

Announcements

Mechanical Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.