Tag Archive | "behavior finance"

The Secret To Value Investing

Saturday, June 13, 2009

0 Comments

Have you ever wondered what separates David Dreman, Warren Buffett, Charlie Munger, etc.from the rest of the world? The answer is simple but the force behind it can make the difference between a great investor and an average investor. I am talking about investor psychology, also known as Behavior Finance.

Continue reading...

<ul><li><strong>woo_ads_rotate</strong> - false</li><li><strong>woo_ad_300_adsense</strong> - <script type=\"text/javascript\"><!--
google_ad_client = \"pub-5554929910856159\";
/* 300x250, created 10/31/09 */
google_ad_slot = \"5165442902\";
google_ad_width = 300;
google_ad_height = 250;
//-->
</script>
<script type=\"text/javascript\"
src=\"http://pagead2.googlesyndication.com/pagead/show_ads.js\">
</script></li><li><strong>woo_ad_300_image</strong> - http://www.woothemes.com/ads/woothemes-300x250-2.gif</li><li><strong>woo_ad_300_url</strong> - http://www.woothemes.com</li><li><strong>woo_ad_content_adsense</strong> - <script type=\"text/javascript\" language=\"javascript\" src=\"http://www.tkqlhce.com/placeholder-3871658?target=_top&mouseover=N\"></script></li><li><strong>woo_ad_content_disable</strong> - true</li><li><strong>woo_ad_content_image</strong> - http://www.woothemes.com/ads/woothemes-468x60-2.gif</li><li><strong>woo_ad_content_url</strong> - http://www.woothemes.com</li><li><strong>woo_ad_image_1</strong> - http://www.advertiserserver.com/advertiserimage.gif</li><li><strong>woo_ad_image_2</strong> - http://www.advertiserserver.com/advertiserimage.gif</li><li><strong>woo_ad_image_3</strong> - http://www.woothemes.com/ads/woothemes-125x125-3.gif</li><li><strong>woo_ad_image_4</strong> - http://www.woothemes.com/ads/woothemes-125x125-4.gif</li><li><strong>woo_ad_image_5</strong> - http://www.woothemes.com/ads/woothemes-125x125-4.gif</li><li><strong>woo_ad_image_6</strong> - http://www.woothemes.com/ads/woothemes-125x125-4.gif</li><li><strong>woo_ad_url_1</strong> - http://www.tkqlhce.com/click-3524069-10522219</li><li><strong>woo_ad_url_2</strong> - http://members.morningstar.com/memberstpages/fvplandingp.html?referid=AF1000</li><li><strong>woo_ad_url_3</strong> - http://www.woothemes.com</li><li><strong>woo_ad_url_4</strong> - http://www.woothemes.com</li><li><strong>woo_ad_url_5</strong> - http://www.woothemes.com</li><li><strong>woo_ad_url_6</strong> - http://www.woothemes.com</li><li><strong>woo_alt_stylesheet</strong> - 4-iceblue.css</li><li><strong>woo_asides_category</strong> - Select a category:</li><li><strong>woo_author</strong> - false</li><li><strong>woo_auto_img</strong> - false</li><li><strong>woo_blog_cat_id</strong> - </li><li><strong>woo_blog_navigation</strong> - true</li><li><strong>woo_blog_navigation_footer</strong> - true</li><li><strong>woo_blog_permalink</strong> - /category/blog/</li><li><strong>woo_blog_sidebar</strong> - Inner Pages</li><li><strong>woo_content</strong> - false</li><li><strong>woo_content_feat</strong> - false</li><li><strong>woo_custom_favicon</strong> - </li><li><strong>woo_disclaimer</strong> - Alejandro Garcia is not an investment advisory service, nor a registered investment adviser or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves.This site is for educational purposes only. The securities mentioned are not appropriate for all investors and nothing herein constitutes a recommendation to buy or sell. Please consult your financial adviser before making investment decisions. While all reasonable effort is made to ensure the accuracy of information and data contained herein, accuracy cannot be guaranteed. Past performance results does not guarantee future performance results. Results are not guaranteed and we assume no liability whatsoever for any material losses that may occur. Again, this site is for educational purposes only, consult your financial adviser before making investment decisions.</li><li><strong>woo_exclude_pages_footer</strong> - 21,24,26,83,62,140,161,146,136,186,220,265,281,287,313</li><li><strong>woo_exclude_pages_main</strong> - 21,24,26,83,62</li><li><strong>woo_exclude_pages_subnav</strong> - 21,24,26,83,62,28,140,146,136.161,186,220</li><li><strong>woo_featured_posts</strong> - Select a number:</li><li><strong>woo_feat_height</strong> - </li><li><strong>woo_feat_image_height</strong> - 195</li><li><strong>woo_feat_image_width</strong> - 540</li><li><strong>woo_feat_width</strong> - </li><li><strong>woo_feedburner_id</strong> - http://feedburner.google.com/fb/a/mailverify?uri=ValueInvestingPro</li><li><strong>woo_feedburner_url</strong> - http://feeds.feedburner.com/ValueInvestingPro</li><li><strong>woo_google_analytics</strong> - <script type=\"text/javascript\">
var gaJsHost = ((\"https:\" == document.location.protocol) ? \"https://ssl.\" : \"http://www.\");
document.write(unescape(\"%3Cscript src=\'\" + gaJsHost + \"google-analytics.com/ga.js\' type=\'text/javascript\'%3E%3C/script%3E\"));
</script>
<script type=\"text/javascript\">
try {
var pageTracker = _gat._getTracker(\"UA-1159133-25\");
pageTracker._trackPageview();
} catch(err) {}</script>

<!-- Kontera ContentLink(TM);-->
<script type=\'text/javascript\'>
var dc_AdLinkColor = \'blue\' ;
var dc_PublisherID = 43215 ;
</script>
<script type=\'text/javascript\' src=\'http://kona.kontera.com/javascript/lib/KonaLibInline.js\'>
</script>
<!-- Kontera ContentLink(TM) --></li><li><strong>woo_homepage</strong> - layout-default.php</li><li><strong>woo_home_one_col</strong> - true</li><li><strong>woo_home_sidebar</strong> - Homepage</li><li><strong>woo_image_single</strong> - false</li><li><strong>woo_intro_page</strong> - 21</li><li><strong>woo_intro_page_left</strong> - 24</li><li><strong>woo_intro_page_right</strong> - 26</li><li><strong>woo_logo</strong> - http://www.valueinvestingpro.com/wp-content/woo_uploads/5-viproweb.png</li><li><strong>woo_mag_featured</strong> - Select a number:</li><li><strong>woo_mag_secondary</strong> - Select a number:</li><li><strong>woo_manual</strong> - http://www.woothemes.com/support/theme-documentation/fresh-news/</li><li><strong>woo_page_sidebar</strong> - Inner Pages</li><li><strong>woo_resize</strong> - true</li><li><strong>woo_shortname</strong> - woo</li><li><strong>woo_single_image_height</strong> - 100</li><li><strong>woo_single_image_width</strong> - 100</li><li><strong>woo_smallthumb_height</strong> - </li><li><strong>woo_smallthumb_width</strong> - </li><li><strong>woo_tabber_pages</strong> - 4,6,75,83</li><li><strong>woo_tabs</strong> - false</li><li><strong>woo_themename</strong> - Fresh News</li><li><strong>woo_the_content</strong> - true</li><li><strong>woo_thumb_height</strong> - </li><li><strong>woo_thumb_image_height</strong> - 75</li><li><strong>woo_thumb_image_width</strong> - 75</li><li><strong>woo_thumb_width</strong> - </li><li><strong>woo_twitter</strong> - </li><li><strong>woo_uploads</strong> - a:3:{i:0;s:70:"http://www.valueinvestingpro.com/wp-content/woo_uploads/5-viproweb.png";i:1;s:65:"http://www.valueinvestingpro.com/wp-content/woo_uploads/4-fao.jpg";i:2;s:70:"http://www.valueinvestingpro.com/wp-content/woo_uploads/3-viproweb.png";}</li><li><strong>woo_video_category</strong> - Select a category:</li></ul>