From Bondi Beach Australia thank you for a fantastic Podcast, I listen to you as I drive my 400 ton mining truck, you have added much knowledge to much trading journey and the great thing is I have many more to get through. Cheers.
Hello from Blue Ocean Strategy! We recently listened to the podcast “Masters in Business: Michael Covel” on Barry Ritholtz’s Big Picture (January 13, 2016). We really appreciate when people take the time to mention blue ocean strategy and as a thank you, we share the best content with our growing global audience via our website, social media accounts and email newsletter. We thought our audience would enjoy this piece and so we have already mentioned and posted a link to it in our eLibrary – here.
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To blue oceans ahead!
With appreciation,
xxx from the BOS Team
Thanks! I hope to have Professor Kim on my podcast soon. Let’s make that happen.
A listener passed this along. An interesting post from Finance Trends (source):
Valeant Pharmaceuticals (VRX) is now big headline news, as the stock’s downward slide continues to punish investors, big and small.
Hedge fund manager, Bill Ackman of Pershing Square was reported to have lost $1 billion in a single day due to VRX’s latest plunge. Institutional ownership of Valeant’s stock was very widespread. As mentioned in our last post, a huge number of hedge funds and mutual funds owned big positions in VRX. Smaller investors may also be feeling the hit in their personal investment accounts or in their pension funds’ returns.
Let’s not focus too much on the investors who were unfortunate enough to get burned in this stock crash. The media and the investing world are already having a field day with this debacle. Instead, let’s take a fresh look at the chart to better understand why so many savvy investors were hurt in this decline.
As you can see in this updated daily chart (see below), VRX had been showing signs of distribution (professional selling) for weeks heading into the fall of 2015.
After breaking down through its 200 day moving average (the red line), the stock moved sideways for a time before plunging through the $150 level. Here’s where the decline really accelerated and volume ramped up.
Towards the end of 2015, we saw a nice rebound in VRX and a bit of chatter about how “everything would be fine” and “here is a smart place for big investors to average down and buy more”, etc. Well, as recent events have shown us, that is not exactly how things played out for the investors who stubbornly held on to their bullish “thesis” for VRX.
At the start of this week, VRX was trading near $68. By Tuesday, the stock had plunged by over 50% to close at $33.49. As of today’s close, VRX is trading at $29.65, 60% lower from our previous Valeant (VRX) update at the end of February.
If you didn’t read my last post on VRX, go back and check out the closing section, “How to avoid disastrous stock declines”. If you know someone who is stubbornly holding on to major losses in their portfolio or trading account, share the article with them. While nothing is foolproof in investing, these simple ideas may help you pare or avoid the disastrous losses that can ruin any investor, big or small.
“The most important rule of trading is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. If they are going against me, then I have a game plan for getting out.” – Paul Tudor Jones, via Darvas Trader.
I’ve been listening to your podcasts. Couple of things:
• Swearing… you swear less than me and I ain’t bad. I wouldn’t worry about it.
• I find everything I’ve listened to universally informing and amusing. If it wasn’t entertaining I’d have problems listening.
• I actually find your monologues more engaging than the interviews and they’re great.
• I started to listen when you were mentioned by Simon Black, and another person/group I read… Bill Bonner’s group. At about the same time.
On the podcast you offer to help me start. Please do! I don’t think I’d want to live in Saigon, but touring the area in a sail boat would be a wonderful way to spend a Wyoming winter. Assuming I can avoid pirates!
My educational background is in physics and economics and professionally I own an internet advertising and online publishing business. So I’m comfortable with numbers and fairly entrepreneurial.
Since reading your books and listening to your podcasts I’ve been busy programming and developing a trend following trading strategy all with set conditions on: when to open positions, how to manage funds and risk exposure, rules for what to do when a trend breaks out, and a stop loss system that defines when to exit at all times win or lose. All done programmatically and connected into the trading platforms API’s. I now feel confident in the process being put in place to be successful with my trading (regardless of whether this particular strategy back tests well or not) and I’m excited for what 2016 and further into the future have in store. An amazing change in less than 6 weeks.
It has been a fantastic learning process for me and it is a process that is on-going and one that I feel has changed my life forever. Without your efforts I don’t think I would have come across any of this and it is for this this reason that I felt I needed to email you to let you know how your work has impacted me.
Meb Faber recently stated on your podcast that buy and hold, value investing, and trend following are techniques of investing that “work.” I was surprised that you did not challenge his assertion. Do you agree with him? If Faber is correct, maybe the reason why is because an investor must select the technique of investing that is best suited to him/her as oppose to selecting the “best” method of investing. Comments?
Regards,
[Name]
Buy and hold works. The question: Do you want that “works”?
That is a personal choice.
Isn’t? I don’t want buy and hold. And of course other strategies work. I have had the likes of Toby Crabel and Larry Williams on my show.
Everyone needs to dig deep and pick what they want in life.
Please enjoy my monologue The Pay People Deserve with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
In this episode of Trend Following Radio:
Unemployment
Minimum Wage
Ayn Rand
American economics
The seen and unseen consequences of a law
Libertarianism
“Given that minimum wages hurt the very people they are supposed to help, by restricting workers’ freedom, reducing their choices, and increasing unemployment, One must wonder why, despite decades of consensus among economists, politicians and pundits continue supporting these destructive regulations. They often do so because they want ‘send the right message’ about the ‘kind of society’ we want to live in. While this appears well-intentioned, the principle underlying such arguments is actually quite perverse: that it is better for us to feel good than to actually do good.” – Daniel Bier
“Prices are not levels that set value, they are metrics that reflect value.” – Anthony Davies
