right i had a few ideas:
Stops aren't nesscessairly bad but they are useful risk control device. If you don't use stops you had better be sure your research is spot on.
Value investing is about risk, you get paid for taking risk. The big returns comes from taking illquid and diverse positions which often are unavailable to retail investors. It has gotten to the point where most "value investors" can't outperform the sp500 by more than 3%. This is more relevant when you consider the future won't be like the past.
Most value investing stories are heavily glamorized, accounting isn't easy.
Value investing isn't a secret and the easy returns are long gone. Remember Buffet is a great investor because he realized the market had changed and he abandoned net-net stocks and moved to franchise, which is essentially hidden asset value.
Momentum trading works, there are numerous academic studies that show that momentum trading works, esp over 6m periods. If you want to make money you can do it momentum trading, if you want to look smart do whatever the **** you like.
So the conclusion is reading a few books don't mean ****. It is the same with everything, if it so ****ing easy everyone would be doing it. Your seeing the big returns but your not thinking, big returns come from somewhere.
However, there are lessons to be learned from value investing. So these books - Seth Klarman, Joel Greenblatt, Stephen Penman, Bruce Greenwald, Damodaran's Investment valuation, Dreman, christopher browne, there also some articles with walter schloss interviews out there and whitman's distress investing is also good. You can find value investment research at
http://www.valueinvestorsclub.com/value2/ which is run by Greenblatt.
However, if you just read these books though you would get ****ed, the reason why is value investing doesn't teach you to avoid "value traps". To know why something works, you have to know why the opposite doesn't (so why is growth bad?). you quickly find that growth/momentum/whatever investing isn't that stupid and that you just don't know what you don't know. An example of this, is you saying that economists don't use logic, this is so unbelievably erroneous i don't know where to start but it these easy assumptions that causes useful ideas to be missed.