CHATROOM

Why Value Investors Are Little Sissy Girls

January 4, 2008 at 3:15 pm
by Timothy Sykes

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This is a real conversation I (T) recently had with a value investor (VI) (who will remain nameless/ gutless) after he finished reading my book and the reason for this post’s title:

T: Happy New Year! get a chance to finish reading my book?
VI: Yes, I did, very entertaining, my wife enjoyed it too!

T: Great, whatcha think about my strategy, a little different than yours, right?
VI: Yes, and that’s why I’m sorry to say I cannot review your book

T: Uhhh, come again?
VI: The stocks you play are too volatile, there’s no way to properly value them.

T: Exactly, that’s why I love my charts so much, the businesses are complete crap.
VI: True, but you are playing a very risky game, and I do not approve.

T: Are you serious? Of course, it’s risky, but that’s why I made so much so quickly – sorry to rip on value, but you can’t make 5,000% within a few years. And, as you’ve read, all my losses come from when I ignored the charts. Live a little, take a walk on the wild side!
VI: Value investing is the only proper way to invest. Everything else is too random.

T: Tell me you’re kidding, I’ve traded thousands of stocks and they can all be reduced to a few dozen patterns; you’re saying it’s all random?
VI: I am not kidding, yes, it appears you do have some kind of talent as a trader, but it’s too indefinite so it’s not credible.

T: Wow, thanks for reminding me why I love trading/hate value investors.
VI: No academic data supports “trading”.

T: Yes, that’s because all the best traders work at billion dollar behemoths and none of them give a crap about academia and neither do I! What a snobby thing to say.
T: So, let me just get this straight, you and your wife liked my book, but you won’t review it because you don’t agree with my strategy?
VI: Yes, that’s correct.

T: Don’t you think you could just say that in your review?
VI: No, I don’t want to promote trading in any way.

T: Do you have any idea how ridiculous that sounds?
VI: This conversation is over, good day.

Notice how polite this guy is – is it just me or are all value investors polite? My guess is it’s because they’re so nit-picky in their investments whereas traders, like our strategy, are more volatile and fly by the seat of your pants, aka fun.

So, value investors, listen up; you’re all a bunch of little sissy girls! You’ve become spoiled with the assets you manage, your mainstream credibility and the money you earn. I respect your strategy, but understand this:

I’m comin’ for you

I don’t want to manage your assets, I don’t want your credibility, but I will take the money you earn and I’ll succeed because your blatant narrow mindedness has left the door wide open for people like me who aren’t polite and who will annihilate the boring/ bigoted stigma associated with finance because of you.

Not understanding what I’m getting at? Stay turned the next few years are going to be hella fun…

Posted in Rants, Value Investors

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  • rich

    i guess the VI realized that you have a big ego and you just want him to acknowledge you and your trading system. talking to someone who just listens to what he wants to listen is indeed annoying. VI realized that the system works for you merely by chance and to replicate the success is highly improbable. therefore, he did not endorse the book to general media. he probably knew that you blew up your cilantro hedge fund business and lose focus on managing money. i will keep up with your TIM performance just to make sure you don’t modify your strategy along the way. by then, time will be the judge if it is possible to replicate the success.

  • timsykes

    Rich, you obviously haven’t read my book/watched my DVD and/or you’re a little sissy girl yourself. I’ve replicated my original success in hundreds of trades. it’s when i get too greedy and ignore the setups that work so well–but come about so rarely–that gets me into trouble and is the cause of ALL my losses. i’ve got 9 years of real world trading data to back me up, but have no fear, by the time i repeat my feat, there’ll be another 9 years or so of data for you little sisy girls to comb through

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  • http://www.divguy.blogspot.com The Div Guy

    What’s your long term track record?

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  • Ben

    Tell this to Warren Buffett, buddy.

    When you actually have some money, you’ll come to see the value of 15% long-term capital gains tax. Also, you might enjoy not having to stare at a chart all the time and watch stocks go up and down.

    I’m with you that pure value is dumb, especially when you’re poor, but value has got the richest man in the world where he is (ditto to the other big fish).

  • http://www.test.timothysykes.com/2008/05/03/sykes-saturday-seven-watch-some-crazy-indians-warren-buffett-screw-up/ Sykes’ Saturday Seven: Watch Some Crazy Indians & Warren Buffett Screw Up | TIM – Timothy Sykes

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  • noobtrader.08

    wow.

  • PortRichey

    I like the way you voice your opinion Tim, but beware af becoming a blowhard like the Cramer guy. When trying to explain his Bear Sterns mess to the reporter on live TV showed what a fool he really is. “You’re money is guarateed” yes, but only 10% of it.

  • http://www.test.timothysykes.com timothysykes

    thanks, if i’ve learned anything over the past decade, its that nothing is guaranteed

  • http://www.test.timothysykes.com timothysykes

    i’ll be posting my entire track record shortly, very non-scalable strategy past a few million, but that curse is all its gift cuz its an easier playing field. buffett also befitted from america’s rise, which doesnt seem likely over the next 30 years

  • http://www.devspace.com/~christianhgross/?p=559 BloggerJacks » Is Value Investing for Chumps or Wussies?

    [...] Sykes has this habit of making fun of value investors (2). So, value investors, listen up; you

  • Reaper

    Total profit of $452.07 from ISRG and YRCW. Not bad.

  • vestor707

    Tim,

    Low stocks are better. But when you run your account up to 3 or 5 million dollars you better have enough experience to play with the big boys. You cant move around 3 million dollars in daytrading pennystocks. You will have to buy more liquidity. Great call Tim!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Donald Allen

    my first tim trade , i made 103.
    i played it terrible.i bought it to high but i still profited.

  • steveduckels

    Made a measley 78.00 on ISRG but I guess that is better than nothing. I put in a trailing stop order for 2.00 when it hit the 194 range and finally got stopped out at 193.62. I think these kinds of plays could be great on a breakout day for the market. I like the liquidity.

  • etyrell

    Bought @ 190, sold @ 194.2.

  • http://www.test.timothysykes.com timothysykes

    nice tyrell, how much $?

  • etyrell

    Not much. I only had 30 shares.

  • tape08

    Just wondering… I didn’t get the sell email, was I supposed to come back to this website to check? (no worries, I didn’t buy anything, this play was too big for my little money)

  • http://mcbowler.com mcbowler

    Seems like a high amount of shares are short on YGE (ratio 5.4) think it will get squeezed?

  • http://www.littleguyinvesting.com/ GlennC

    Is value investing really so awful? The penny stock promoters need dumb people to prey on. Value investors tend to be less dumb.

    On the other hand, a lot of value “investors” got whacked when they invested in banks, which they probably didn’t understand (they aren’t always transparent about their bad loans and hundreds of derivative contracts). Happened to Warren Buffett, Bill Miller (I consider Bill a value pretender), and a number of other guys. But Warren is still one rich ass motherfucker.

  • http://www.littleguyinvesting.com/ GlennC

    Is value investing really so awful? The penny stock promoters need dumb people to prey on. Value investors tend to be less dumb.

    On the other hand, a lot of value “investors” got whacked when they invested in banks, which they probably didn't understand (they aren't always transparent about their bad loans and hundreds of derivative contracts). Happened to Warren Buffett, Bill Miller (I consider Bill a value pretender), and a number of other guys. But Warren is still one rich ass motherfucker.