How big an impact does information asymmetry have on investment and choices?
Posted: Mon Feb 17, 2025 8:58 am
I invested in Apple in , and it has been almost years now. If you don't understand this business, corporate culture, and business model, you would have left long ago and would not have stayed until now. So pursuing speed is quite difficult.
For me, information asymmetry does not have much impact on stock trading, unless there are people who hope to buy and sell immediately and make money that they shouldn’t make. Of course, there are some people kenya phone number list who make money by taking advantage of information asymmetry, but I don’t really like this practice. To me, investment is not a zerosum game, but information gap is a zerosum game. It may be a bit unethical to use information gap to make money in advance. Quantitative investment has a bit of this flavor, but if you don’t do it, others will. It’s just business and there’s nothing wrong with it.
I think in the long run, these are small ripples, and it can be tiring to dwell on them too much. Take a longterm view in life and hold on to good companies when you find them. Some people asked in return, what if you take the wrong company, wouldn’t that be even worse? I tell many people that value investing does not mean longterm investment. There is no other way to evaluate an investment. You invest in value. Otherwise, what are you investing in? So, look at the long term, hold good companies, and life will be much happier.
Look at Buffett and Munger, they both live well, while many of those who are very speculative live miserably. This is a true story. It really failed, or the business failed miserably. Such situations are not uncommon in China. As a rich man, why should I go to jail for no reason? You can't figure it out.
For me, information asymmetry does not have much impact on stock trading, unless there are people who hope to buy and sell immediately and make money that they shouldn’t make. Of course, there are some people kenya phone number list who make money by taking advantage of information asymmetry, but I don’t really like this practice. To me, investment is not a zerosum game, but information gap is a zerosum game. It may be a bit unethical to use information gap to make money in advance. Quantitative investment has a bit of this flavor, but if you don’t do it, others will. It’s just business and there’s nothing wrong with it.
I think in the long run, these are small ripples, and it can be tiring to dwell on them too much. Take a longterm view in life and hold on to good companies when you find them. Some people asked in return, what if you take the wrong company, wouldn’t that be even worse? I tell many people that value investing does not mean longterm investment. There is no other way to evaluate an investment. You invest in value. Otherwise, what are you investing in? So, look at the long term, hold good companies, and life will be much happier.
Look at Buffett and Munger, they both live well, while many of those who are very speculative live miserably. This is a true story. It really failed, or the business failed miserably. Such situations are not uncommon in China. As a rich man, why should I go to jail for no reason? You can't figure it out.