So I had a couple of interviews today with the investment division of a large financial services firm. The interviews could have gone better, but I was able to pick the brains of some very experienced investment management folk on their investment philosophies. In particular, I asked one of my interviewers what he thought of the markets, seeing as they are in a flipped relationship with economic activity. That is, weak jobs reports cause the market to rise, strong jobs reports cause the market to fall, for fear of the dreaded tapering.
His response was very interesting. He basically said that markets don’t matter, what you should focus your attention on is the business and how well its run. I can see where he is coming from. I may have been focusing too much on market movements when determining whether to invest or not, and which stock to choose.
So this is something to keep in mind for next time, although I still feel that market movements are important and should be factored into any investment analysis.
As Keynes said “The markets can stay irrational longer than you can stay solvent”.
Overall, it was an interesting day today and I learnt quite a bit from some very experienced investors.