Recently, I wrote a Quora post on deep value investing and how to avoid blowups and value traps. You can find it in the link here.
This post describes and what value traps are, how they look like and how value traps can be ameliorated. Yes, you can reduce them but you cannot entirely avoid them. The idea that value traps can be done away with is a fallacious one. As a deep value investor, with enough time, you will find that these are inevitable. The question is how do we reduce their frequency of occurrence in our deep value portfolios.
Looking at it from a Grahamian perspective, you want to be right on average and you want to beat the markets. If this is something that actually interests you, click on the link below.
There are a bunch of posts by me on Quora. Just scroll down and click on the one that you are interested in viewing.
As always, may you be blessed with prosperity, health and happiness!
