How to Protect an Investor from Himself
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.
Brendan Byrnes: So you mentioned that the book is first and foremost about value investing. You mentioned that you decided to add the quantitative aspect. Is that more of protecting investors from themselves kind of thing? How did you decide on the quantitative aspect of it?
Wesley Gray: Well, I've been a value investor, try to pick stocks. I've been a quantitative investor, trying to deal with computers. And the problem is that I start off as a value investor. I had a lot of luck in the beginning but then I got over confident, starting putting like 30% of my capital in some little penny stock idea that I thought was a guarantee and it actually blew up on me.
So I was fortunate enough to learn early on, the value of investing is a great philosophy but the problem is like I've got a PhD in finance and I blew it up. But with the quantitative tools I just thought, OK, I can get a computer while I'm sitting there thinking in a good rational mind-set this is how I should do it when I'm not stressed out and the markets blowing up and so for me it's just a great way to kind of contain myself and make sure I'm doing the right thing.
The article How to Protect an Investor from Himself originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.