The true investor when he owns a listed common stock, can take advantage of the daily market price or leave it alone, as dictated by his own judgment and inclination.
- He must take cognizance of important price movements, for otherwise his judgment will have nothing to work on.
- Conceivably they may give him a warning signal which he will do well to heed—this in plain English means that he is to sell his shares because the price has gone down, foreboding worse things to come.
- In our view such signals are misleading at least as often as they are helpful.
- They provide him with an opportunity to buy wisely when prices fall sharply and
- to sell wisely when they advance a great deal.
- At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies