In my previous post, I wrote in the comments section that most retail investors began their journey as a Trader, then as a Value Investor, moving on to Dividend Investing, and finally capitulating towards Low Cost Passive Indexing when all things fail…
What about Growth Investing?
That was deliberate.
Because most retail traders and investors behave like Growth Investors – no matter what they call themselves.
Verification 1: When you made a trade to buy (long), and/or you invest in something, were you expecting the price to go up higher?
Verification 2: When equities prices were low in 2009 and end 2011, did you do most of your buying then? Or looking at your entry prices, most of them were bought near intermediate highs?
Verification 3: How many of you waited for the dip to scale into your position (let the price come to you)? You chased the market didn’t you?
So tell me, how are you not a Growth Investor by default?
P.S. For those who are not familiar with Growth Investing.
The father of Growth Investing is Thomas Rowe Price, Jr.
Most retail investors are more familiar with Philip Fisher and his book “Common Stocks And Uncommon Profits”.
This post is a parody.
Although most of us act like “Growth Investors”, there is a reason why most retail traders and retail investors lose money.
And for those who like to do reflections and 2nd level thinking, ask yourselves why there are so few seminars/courses on Growth Investing?
If you think you have the answer, buy me kopi and we can exchange our thoughts over drinks. Wink.
Singapore Man of Leisure (welcome to my blog; just google it!)