Tuesday, May 15, 2007

Ken Fisher's Three Questions That Count

Finished reading this book last month.

I think it is a good read and well worth the time.

In this book, Ken Fisher summerized the following three questions that will give you investing edge over the market. So what are they:

Q1: What Do You Believe That Is Actually False?
Q2: What Can You Fathom That Others Find Unfathomable?
Q3: What the Heck is My Brain Doing to Blindside Me Now?

Quite interesting, using my own analysis on OVTI as example:

for Q1, When the market believe MU ate OVTI's market share because of the advantage of their business model, I don't agree and believe it is actually false.

for Q2, When others think OVTI's only hope for turning around is revenue from TrueFocus, and that is a largely unknown remote future money. I thought sth else.

for Q3, When long and short on OVTI are waiting for ER and think that is the only thing can move the stock in short term. I am profitting on such pre-ER run, because my brain is trained to think outside the obvious causes.

Same thing happened to ACUS, when the wall street thought ACUS has to meet all the endpoints in order to have a strong FDA case, I strongly disagree, and let's see what is going to happen next.

So I recommend this book to you, since i learned quite a lot from him.

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