Simplicity is the ultimate sophistication. ~ Leonardo DaVinci

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Simplicity. We all understand the word and what it means. It needs no explanation. Simplicity is just something that is uncomplicated in form, quality or design as the dictionary explains it.

However, when it comes to investing in the stock market, we all have a tendency to make things more complicated than it actually is. Don’t we?

I am not sure but I suspect it has something to do with our ego and emotions. And the truth is many of us want to look smart. In the stock market, this plays out as a bias called the overconfidence effect, where confidence in these judgments exceed the accuracy of these judgments.

I have written about the overconfidence effect in another post here.

What I’d like to say about investing is that involves simplicity and not complication. Because, simplicity, at least for me has brought me a tremendous sense of peace in my investing life and also an abundance of great joy in the form of above average investing results.

That is what Ben Graham has taught me. Unlike many of the investors we see today, Ben Graham adhered to elegant simplicity and it has served him very well.

While Graham has taught the world many things, I feel that one of the most profound methods if you will, is the net current asset value method of appraising a stock. There are no sophisticated discount and growth rates and more of what is quantitative and objective.

And many academics have back tested Graham’s principles and strategies. And unfailingly, they have worked very well.

So these are my ideas of simplicity and there is no compulsion to subscribe to them. But you know what? It has worked for me and many investors.

So here it is. Just 3 key takeaways.

  1. Simplicity takes courage.
  2. Simplicity takes discipline
  3. Simple is not easy.

As always, may you be blessed with prosperity, good health and happiness!

Other Articles

Floyd Odlum : The Deep Value Investor You Have Never Heard Of

Net Current Asset Value Investing In Japan

65% Profit In 1 Year For Beaten Down Cash Bargain : AEI Corporation

Junkyard Net Nets From Japan : Leader Electronics Corporation 6867 > 100% Profit In 6 Months

A 10 Bagger Net-Net – A Look Back At Barratt Developments PLC : A Net-Net In 2008-2009

Paying Up For Growth: You’d Better Know What you Are Doing

Books On Net Current Asset Value Investing : Case Study Driven

These books which I have written are case study driven and discuss strategies, mindsets and situational approaches to employing the net current asset value strategy.

What Is TheHolyfinancier About?

  • A database of net net stocks or net current asset value stocks
  • Investing ideas in members section
  • Blog articles and investing education
  • Investing research of deep value stocks

kingsley

I have been an investor for 15 years now and my journey has meandered from Warren Buffett to Ben Graham. My start, like many, really was the naive idea that Buffett's skills could be replicated in some fashion. I was proven wrong when some of the supposed stock picks that I chose had dismal performances. Then, I learnt that it is no point trying to be someone I am not. Gradually, through failure and some success in deep value investing, my approach towards stocks gradually shifted to an approach based around Graham's techniques. So, I give credit where credit is due and to Ben Graham, I and many other investors around the world, owe him a great deal. So, if you want to read up on biographies, read about Ben Graham. His seminal work, Security Analysis is a gem. My books are just rich interpretations of what he has taught.

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