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Walter Lu
Individual Investor
Walter is a curious investing enthusiast with an analytical mindset.
Investment style
Walter's personality can be described as independent, logical, and humble, and these traits are reflected in his investing style.
He believes that there are two keys to successful investing: an edge and proper risk management. Without an edge, it's difficult to achieve more than mediocrity in the long run, and without risk management, the long run might not be reached at all.
There are many ways to gain an edge in the market; Walter has chosen to follow the value investing philosophy because it benefits from the positive-sum game of long-term investment returns, is fundamental to the stock market and therefore does not change over time (as opposed to higher-level strategies that can suffer "system death"), fits well with his personality, and has been proven to be very successful time and again.
It may be possible to achieve higher returns with other strategies, but Walter thinks they are much more difficult to use successfully. However, he tries to keep an open mind, and is willing to incorporate non-value elements into his strategy, as long as they are proven and make intuitive sense, but they would be secondary to the value investing principles.
His risk management system is simple: he limits risk by being adequately diversified and having a humble attitude. Unlike some value investors, he is wary of "averaging down" in deteriorating situations. The primary goal of any long-term investor should be to avoid blowing up, and Walter is willing to sacrifice potential returns in order to insure against disaster.
Finally, although one of the chief advantages of value investing is the luxury of being able to take a long-term perspective, Walter would not call himself a "buy and hold" investor. As long as a position's prospects remains favorable, he is willing to hold it indefinitely, but he will exit when he believes there are better odds elsewhere, as the benefits of low turnover should be weighed against risk and opportunity cost.
Important info
Performance of the model manager’s account is calculated by Covestor on a daily time-weighted basis, including cash and broker commissions. More
Personal Track Record returns are calculated by Covestor on a daily time-weighted basis of equity positions in the account provided by the member. More
Past performance is no guarantee of future results. Month to Date returns & Since Inception returns are revised daily. All other returns (month, 3 month, year to date, et al) are calculated as of the most recent month end date.
The subscription minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by Covestor, based on the characteristics of the underlying model. It should not be considered as specific investment advice for your investment situation.