I remember previously when LKT requested for trading halt due to announcements, he says wait and pay attention to this year end show. Is this the fking year end show he is saying hahaha… They eat the retailers like a little worms and nothing you can do about it…. Then when time is ripe, they will push to the sky (if this can happened) where u will 怀疑人生 hahaha..

Qualitvalue Investing Dharma 101:

Root Mean Square Ratio

Golden Ratio 0.618 (equivalent to MOS 38.2%) is a good position where one can start to average down as a contrarian.

For instance, if the intrinsic value is $1, then $0.618 is a very good position to begin “contrariating” with.

But many times it is hard to get 0.618 at a quality stock with decent growth.

Here comes another ratio.

Root Mean Square Ratio
= 1÷√(2)
= 0.707107
= MOS 29.29%

Reference:

Golden Ratio
= 1÷((1+√(5))÷2)
= 0.618034
= MOS 38.20%