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Saturday, April 4, 2009

Singapore: Growth Investing



Simple enough... But how do they spot companies with off balance sheet risks? How do they spot companies whose treasury engages is swaps?

But anyway, we think it's good to know some of the parameters. Should you get the book?

Its up to you, but the book will probably try to sell you the benefit of the software so you will subscribe to it. Some of these parameters can help you make less mistakes, but you cannot invest in a company looking at such signals alone.

These type of investing styles are "quants", which means they depend on some parameters, algorithms and formulae to spot price trends and profit from these trends. However quants tend to miscalculate or zero rate risks that are highly improbable.

Highly improbable events are not impossible events. When the improbably happens, quants fall flat on the face.

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