Friday, 10 April 2015

The Bear Market Investor

A few weeks ago I posted a blog on the bearish investor and the essence of that blog was basically to give you an idea of how an investor should approach the investment landscape when the market for investment becomes bearish.

See video on the lessons of the bear:  The Grizzly.

There is an investment opportunity in all investment markets, but you almost must have an activist investor's eyes for the entire market place of investment with special interest in that section of the market that you understand well enough within your circle of competence.

The range of your investment skills should be malleable to adapt as you deploy capital. Dr. Henry Singleton did a fantastic job with the capital resource of Teledyne as its CEO. William Thorndike made out a case for Dr. Singleton's approach in his book "The Outsider".

One of the key disciplines of a bear market investor is remoteness or isolation from the follies of the investment market. This practice of isolation is similar to that of Warren Buffett from Berkshire Hathaway he being located out in Omaha, Nebraska and Wall Street, New York.

A bear is a big animal and only by packing on the pounds in the time of great time of harvest can build his strength and wait for the lean seasons. Bears are loners and they don't mind being away from the crowd hence the hibernation over the seasons.

 In a bear market the instinct of the bear market investors must be triggered by what comes to them, salmon, grass and any other thing that the season brings.

The sage is another key component resource for weight gain of the bear, which is like capital for a bear market investor.

Focus InSight: Learn the ways of the bear and take sage and isolate yourself from the market influence and await the investment opportunity that will come your way with patience exercised.

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Feel free to ask questions and make comments.

FII