At Markets Leaked, our investment philosophy is anchored in the principle of assertive ownership. We advocate for a strategic approach where investors prioritize 'cheap bids' - seeking undervalued stocks that offer potential for significant growth. This method is not just about buying low, but about recognizing untapped value and opportunity in the market.
Rule of Stock Segregation: You Are the OwnerA crucial part of our philosophy is what we call the 'Rule of Stock Segregation.' This rule is simple but profound: When you buy a stock, you must internalize that you are the owner of that stock. It's not the bank's, not the hedge fund's, and certainly not your trading platform's. This mindset is essential because it places you at the center of the investment process.
Understanding the Dynamics of Stock LendingIn the current financial ecosystem, banks, hedge funds, and trading platforms often engage in the practice of stock lending. They may use the stocks in your portfolio to hedge or for other financial maneuvers, often profiting from these activities. This is where your role as the owner becomes critical.
Holding the Cards: Leveraging Ownership RightsBy following the Rule of Stock Segregation, you, as the investor, hold the cards. This position prevents these institutions from utilizing your stocks without your consent. More importantly, it empowers you to demand a premium if and when your stocks are used. This is not just about asserting control; it's about recognizing and exercising your rights as a shareholder.
Conclusion: Empowerment Through OwnershipOur philosophy is designed to empower you as an investor. By understanding and exercising your ownership rights, you can make more informed decisions, potentially increase your returns, and fundamentally change the way you interact with the stock market. Remember, in the realm of investing, knowledge, and assertiveness are key to success.