This post is inspired by an article by Goh Eng Yeow (article title : In Investing, Use Common Sense) in Sunday Times last week. Ya, practicing common sense is useful and convenient advice when come to anything (i.e. not restricted to investing).
"Buy Low ; Sell High"
"Invest In Company With Share Price Below Their Intrinsic Value" (for Value Investors)
"Invest In Company With Strong Growth Forecast" (for Growth Investors)
"Invest and Hold and collect Dividend" (for Dividend Investors)
These definitely are sure-win common sense right?
But the issue is, common sense is applicable to common scenarios, but in investing (or life, in general), we are constantly dealing with exceptional and un-common scenarios (which are mostly not within our control) and we need to response/react to them there and then. With varying experience and knowledge, the result/outcomes will vary too. Hence, there isn't a set of common sense ...
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