Observations from a long time professional investor.

PaulRen's picture

Observations from a long time/real time, professional investor.

In Thailand, I think more then elsewhere, there are lots of engineers and doctors -which is great. But for the most part these often do not make good stock market investors. This I've observed again and again over my entire 40 year investor career, of course here I am generalizing. 

Not long ago the current SET president was interviewed and he sort of made a point, with some pride, how he is an engineer by training. Engineers most often deal in certainties with exact calculations. Doctors too often are a victims of their high education, thinking they "know it all better". Used to giving prescriptions but not following them. :) They do know allot, but in their own field, and a stock market is nothing but certainty.  Markets -ever more often- move by sentiment, forward looking besides in chaotic ways.  Where you have to sell when you least want to (as the stock price is working in your favor and being nice to you) and buy when you least want to, as its down on bad news. You have to love it when most hate it and ditch it when most want it. And even at that, its not that simple. Hence you have to foremost/often be the "grave dancer above the moribund consensus" and many just can't handle this. Not something which can easily be taught in any so called valuation courses. Hence its close to a form of art which many don't get.

There are lots of so called arm-chair investors out there. Self acclaimed gurus' some with PhD's and other high end qualifications. But are they good investors in these "du jour" chaotic times?  Many of them are warmongers/perm a-bears, forever alerting to all the risks or how bad things are. Never to understand yet another reality as just one example, a company which is not doing well...but in fact now doing less bad, can be a good investment.  This is likely what is happening right now. The covit pandemic remains bad, but its a little less bad then some weeks ago here? Hence the SET market is sensing this -and has moved up of late.

Best Regards,

Paul A. Renaud.