The Student Room Group
Uni students - Complete our survey >>
Uni students - Complete our survey >>
Uni students - Complete our survey >>

why do value investors do not give a **** about macroeconomics

Today i met a successful investor who use value investing methods, he told me macroeconomics are useless for investing.

warren buffet also doesnt care about macro.

but if you ask any serious trader in big financial institution, they all know the macros inside out and they will tell you they dont agree with this view that macros are not important (my cousin is one and i asked him already)
Original post by HucktheForde
Today i met a successful investor who use value investing methods, he told me macroeconomics are useless for investing.

warren buffet also doesnt care about macro.

but if you ask any serious trader in big financial institution, they all know the macros inside out and they will tell you they dont agree with this view that macros are not important (my cousin is one and i asked him already)


Btiefly this will depend on your investing strategy and what your targeting to invest in. As well as your capital available to play with.
Original post by HucktheForde
Today i met a successful investor who use value investing methods, he told me macroeconomics are useless for investing.

warren buffet also doesnt care about macro.

but if you ask any serious trader in big financial institution, they all know the macros inside out and they will tell you they dont agree with this view that macros are not important (my cousin is one and i asked him already)


It depends on your investment strategy and timescale.

Buffet is more of a "buy and hold" style investor with a long investment horizon where macroeconomics have negligible influence.

On the other hand if you are a trader on commission, or your area of 'expertise' is in short term trades (which are far more volatile and margins are low), you are going emphasise macroeconomics and high volumes of trades.
Reply 3
Avatar for Rakas21
Rakas21
21
Original post by HucktheForde
Today i met a successful investor who use value investing methods, he told me macroeconomics are useless for investing.

warren buffet also doesnt care about macro.

but if you ask any serious trader in big financial institution, they all know the macros inside out and they will tell you they dont agree with this view that macros are not important (my cousin is one and i asked him already)


He's somewhat correct.

Macroeconomics may influence the larger background state of the investment climate however markets and valuations are not dictated to by this. Stock markets are far more dynamic than the overall economy.

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you