“Welcome to this exciting world. I suppose that if you are here today, it is because you are passionate about finances and investment; That’s why let me start with a warning: this is a very serious and demanding sector, nothing like what you have seen in Hollywood movies.”
With these words, in front of a still from the now classic “The Wolf of Wall Street,” Rodrigo Cobos, CFA Charterholder and advisor to the Nogal Capital fund, began his conference before the Investment and Finance Club (CIF) of CIS University.
The presentation, organized by Professor Ricardo Estellés, coordinator of the Club, showed the students the work methodology behind the “Value Investment” strategies.
“I am a huge fan of mountains and mountaineering, and I see similarities between both activities, such as risk management, psychological strength, and goal-setting.”
To achieve one’s objectives and climb atop rent-seeking, Rodrigo raises four fundamental points that every investor should take into account:
1 – “Always focus on the long term”: Investing, contrary to what we have been led to believe, consists of making money over several years, continuously and consistently. Time should work in our favor and we should not see it as a limiting element. Therefore we must forget short-term strategies because they are usually sterile.
2 – “Buy at an extraordinary price, that is, very low, and sell at its normal value”: Value investing consists primarily of detecting assets whose price is undervalued, acquiring them and waiting for the market to price them at their real price. But beware of bargains! Buying simply because the price falls can be as bad an idea as trying to catch a free-falling knife by the edge.
3 – “Experience is everything, therefore learn from the people who have come before you”: In this job, years are stripes and wisdom. If you find yourself at a crossroads, it is very likely that leaders like Warren Buffet have already been there before. Learn from the mistakes that the “seniors” have already made, not from your own mistakes.
4 – “Think”: You are your greatest asset, train yourself, read, learn from all the free sources you have and become the best version of yourself.
Seeking long-term sustained growth:
“If I were to leave you with only one lesson, it would be to develop your own investment strategy and methodology. No two people are the same, therefore each person can create their own system. Of course, never invest just for the sake of it, without a strategy behind.”
In investing, what you can get in 30 days is often overrated, and what you can get in 30 years of consistency, using compound interest, is often undervalued.
“This is a marathon, not a sprint. It is about accumulating profit capital little by little over the next few years. Be patient. Be constant. And enjoy the landscape during the climb to the top.”
