I loved reading this article. This was basically the sum of my life. Keep failing in stock investments and techincal analysis and value investing buys. Doing stupid things over and over. Almost giving up.
Operating word being ALMOST.
In the end, I attribute more to the fact that I never stopped reading and learning and keep trying to invest in the stock market that I finally have the success today.
Most new investors come into the forum, start posting up their value and strategies and technical indicators, then when things go wrong they quickly give up and move on to something else.
Good info there, let me derive the above using electrical engineering math (Mr.Long you should be able to understand this):
Power = Voltage Potential (V) x Current (I) = Voltage Potential x ( 1/Resistance) = V x (1/R)
Your r factor above is analogous to the Voltage (the set) Your Q factor above is analogous to the current which is inverse to Setting's resistance (settings)
Your S success, is the Power delivered. .......................................
To release your full Power (Kw) as per your Potential (Voltage), you need to keep relentlessly, persistently look for paths giving least Resistance (R)...so the current (I) can flow easily....
Its all to do with (1) SET (yourself, internal potential) and, (2) SETTINGS (surroundings, experience, external stimuli)....
so if you think your job (settings) is not nurturing your growth with your potential...find another job...keep trying other paths...you may find the path with least resistance to release your full potential...
The above principle can be used to select stocks too: .....................................................
Posted by probability > Nov 29, 2018 12:16 AM | Report Abuse X
Having some electrical knowledge... i always use the below analogy:
(i) Sales Volume potential is like electricity Current I....and, (ii) Gross margins are like Voltage, V...
Earnings = Sales x Margin = I x V = Power in Watts
We need to see where lightning can strike......
i.e where there is huge pent up electric potential difference (voltage)....and sparks will lead to further sparks...and release an enormous jolt of current.......
Posted by probability > Nov 29, 2018 12:37 AM | Report Abuse X
i you watch a lightening strike in super slow motion X 100...viewed upside down....thats exactly like how a business or tree grows....
each branch generating more branches (RR)..while all the branches thickens and widens (ROE).....
Growth = RR x ROE .................
RR = Reinvestment rate ROE = Return on Equity...
The above are the two engines....the fundamental Driving Force of a business performance
the late bloomers can be explained using the below formula much easily:
S= r^2 x Q
Say one is extremely talented...and yet did not have opportunities to unleash his potentials...due to poor settings or bad luck,...his r value would have still been rising steadily as he invest in his knowledge...r would have grown so much that one day...when he finally finds a small Q...and opportunity to execute his ideas....the r^2 is so big that even with a small Q value...the Success, S value would be enormous.
I think this might explain late bloomers...like yourself, KC..and the likes Of Nelson Mandela...as their r value was steadily rising despite having no visible success earlier
Posted by (S = QR) Philip > Jan 26, 2019 02:10 PM | Report Abuse
After reading this I will be changing my name to John Fenn!
I loved reading this article. This was basically the sum of my life. Keep failing in stock investments and techincal analysis and value investing buys. Doing stupid things over and over. Almost giving up.
Operating word being ALMOST.
In the end, I attribute more to the fact that I never stopped reading and learning and keep trying to invest in the stock market that I finally have the success today.
Most new investors come into the forum, start posting up their value and strategies and technical indicators, then when things go wrong they quickly give up and move on to something else.
Q or how to avoid the Mourinho problem...good for 1 or 2 years and third year, every thing collapse because ... 1 you lost it 2 u offended the players 3 the players no longer trust you 4 u become over confident. 5......third year, u got more money and your $ lost is even faster...
My take away from all the above is this: ........................................
Value Margins more than Sales for the same Earnings, value ROE more than RR for the same growth, Value Quality more than Quantity, Value Efficiency more than Effectiveness...
Value your potentials (knowledge, skills) more than opportunities...for the same objective of Success.
If u use Qr to look for shares in its early days / or mid cycle...instead of PE....u would have found Public Bank, Harta, Top Glove, Yinson...and Scientex, AeonCredit, Vitrox and the best of the best at the earliest possible stage.
Today saturday 4 ekor draw result, my uncle after seeing the 4 ekor result, always tell me, if he adopted QR approach....he will be able to pick the 4 ekor 1st prize winner consistently loh...!!
Btw my uncle...always tell me the same story everytime after the 4 ekor draw result is out loh....!!
Raider is smiling...he...he..he..."sounds familiar like our friend QQQ loh"...!!
Posted by qqq3 > Jan 26, 2019 11:07 PM | Report Abuse
If one is to use Qr to look for shares in its early days / or mid cycle...instead of PE....one would have found Public Bank, Harta, Top Glove, Yinson...and Scientex, AeonCredit, Vitrox and the best of the best at the earliest possible stage.
raid....empat ekor is pure random....Qr calls for judgement and experience......and getting to know the management /CEO...some thing that one in NZ has a clear disadvantage........that is why he avoids it....but not fair to his students.....
Not random lah...after seeing the result out.. sure can quack...quack...quack loh...!!
Samething mah...after seeing the result of share historical share performance in the rear mirror pbb, harta, scientex, aeoncr, vitrox...u sure can certainly quack quack quack loh....!! WHO CANNOT LEH ??
Posted by qqq3 > Jan 26, 2019 11:26 PM | Report Abuse
raid....empat ekor is pure random....Qr calls for judgement and experience....
since i am from physics background...i never saw the links earlier...but just from your description...the bell rang immediately...all those i wrote above was without reading any of these articles...
it makes a lot of sense...but difficult to practice..not everyone can make use of it...
but smart enough to get HT Padu involved....and PNB recently bought more HT Padu just before announcement.....a block deal...a big block deal......maybe even got Zeti blessing woh?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
qqq3
13,202 posts
Posted by qqq3 > 2019-01-25 23:36 | Report Abuse
https://www.inc.com/jessica-stillman/physicists-have-discovered-a-formula-for-success-it-contains-a-brutal-truth-most-people-dont-want-to-admit.html