RE: Tournesol on ADVFN21 Mar 2019 16:09
Hi SlowRoll,
Thanks for this ! I asked tournesol if he wouldn't mind sharing some of his background, to put the comments you've posted in context.
For completeness' sake, this is how he replied :
.."Extrader
You flatter me. My professional background sounds more impressive/relevant than it really is. I was an IT person who started in manufacturing industry then joined Mobil Oil as an auditor of systems, cyber-security and internal controls. I carried out assignments for them in 18 different countries in Europe, Africa, Asia and Australasia. I left them to join an independent North Sea E&P which was in the FTSE 100 where I was head of IT and responsible for computerising the company from the ground up. I left them to work as an independent consultant specialising in cyber security and internal controls and undertook many assignments all over the world both in the oil industry and in financial services. Altogether I've worked in 25 different countries, some repeatedly.
All of the above gave me a reasonable understanding of the oil industry from an operational perspective. But I must be clear that when it comes to geology and the related technical sciences I am just a layman.
I developed a chronic illness when I was 50 and had to stop work prematurely. I spent 2 years in bed during which time my trusted financial advisors/brokers managed to lose 65% of my savings and pension. I decided to take investment matters into my own hands and that henceforth I would only invest in things I understood. I decided to specialise in E&P but I quickly realised that an investment perspective has to be very different from an operational one. I've been trying to learn ever since. It's now almost 20 years since my unplanned early retirement and I've made a good living from investment.
The single most important thing (MIT) I've learned is that operational performance is not the same thing as investment performance. An excellent company can be a poor investment and vice versa. It all depends on the price you have to pay to get into it.
The second MIT is that I'm not a trader. I succeed mostly by getting in relatively early at a reasonable price and then being a patient long term holder.
The third MIT is that being a long termer does not mean ignoring short term events. Most short term events are a) unpredictable and b) random background noise - so you have little option but to ignore them. But some short term events are either predictable or their impact is predictable. I am quite happy to reduce or increase my long term holding to gain leverage from short term events when the market either over-reacts or reacts slowly. Doing that can multiply returns. I don't often do this, and it does not always work out, but when it does it can be extremely beneficial, so I am always looking for opportunities...."
At the time of writing, the copied post (here) is the highest recc'd I've seen here.....and the follow-on reply is the highest recc'd I've s
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