A quick Lesson from Buffet
It kinda of made sense to me but I am glad that there is affirmation from Buffet.
And that is knowledge is power.
Although this adage is too often used and in many scenarios self defeating, it is probably true in investing.
Yet I believe the grain runs deeper than that.
Yes hoarding information about the stock I am buying may help bolster its value, but who benefits? Is it the big players or the little guys(like this church mouse for instance). The big guns are the one who can move and invest in bulk and reap the benefits of economies of scale. The big guns often also have the capacity and capability to invest with vision of gods as opposed to that of frogs in a well. Well my point is as small investors, would it actually be more worthy to share our views and leverage off our collective wisdom, or should we do the hoarding? This leads to the bad joke about how a collective of froggy eyes do not a god's eye make, but still hey! open source software has trounced the commercial collective so badly its not funny =P
Still even with the open source community, there are those who have little to share and are only the beneficiaries. And yet open source moves with a few elite classes of coders. This is not to belittle the efforts of the others, they do contribute, even make up the most important portion of the whole movement, but face it there are different classes of gurus and we need people at the helm!
Similarly in investing, it is probably most apt to find a few trusted individuals and share the knowledge you have. I believe this to be true of any formative organisation. Yes commoditisation of the value of a good is bad for the investor (or rather it either becomes highly speculative or it stagnates into a full valued share), still, you need friends people =) Well at least if you are a poor lil' church mouse like moi.
And that is knowledge is power.
Although this adage is too often used and in many scenarios self defeating, it is probably true in investing.
Yet I believe the grain runs deeper than that.
Yes hoarding information about the stock I am buying may help bolster its value, but who benefits? Is it the big players or the little guys(like this church mouse for instance). The big guns are the one who can move and invest in bulk and reap the benefits of economies of scale. The big guns often also have the capacity and capability to invest with vision of gods as opposed to that of frogs in a well. Well my point is as small investors, would it actually be more worthy to share our views and leverage off our collective wisdom, or should we do the hoarding? This leads to the bad joke about how a collective of froggy eyes do not a god's eye make, but still hey! open source software has trounced the commercial collective so badly its not funny =P
Still even with the open source community, there are those who have little to share and are only the beneficiaries. And yet open source moves with a few elite classes of coders. This is not to belittle the efforts of the others, they do contribute, even make up the most important portion of the whole movement, but face it there are different classes of gurus and we need people at the helm!
Similarly in investing, it is probably most apt to find a few trusted individuals and share the knowledge you have. I believe this to be true of any formative organisation. Yes commoditisation of the value of a good is bad for the investor (or rather it either becomes highly speculative or it stagnates into a full valued share), still, you need friends people =) Well at least if you are a poor lil' church mouse like moi.
Labels: Investment
posted by god_is_good478 at 8:22 PM
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