Investment Philosophy and Strategies - Damodaran.
? Your investment philosophy is your set of core beliefs about how investors
behave and the extent to which you consider the market to be efficient.
? Your investment strategy should be designed to take advantage of pricing errors ?
e.g. price momentum resulting from the herd mentality; market over-reaction to
news; mis-pricing due to lack of financial coverage. Basing a strategy on market
over-reaction to news is a short-term strategy whereas buying neglected
companies is longer term. Strategies become less successful the more they are
? Consideration of your strengths and weaknesses is important e.g. your attitude to
risk. Also your time horizons.