Wednesday, 15 August 2012

Why I am interested in stocks?

Stock prices fluctuated wildly while the underlying value of the business was far more stable.  

To be a successful investor you need to have the time to stop and contemplate what's going on.  


Note carefully what Graham is saying here. 

It is not just possible, but probable, that most of the stocks you own will gain at least 50% from their lowest price and lose at least 33% ("equivalent one-third") from their highest price -regardless of which stocks you own or whether the market as a whole goes up or down.

If you can't live with that - or you think your portfolio is somehow magically exempt from it - then you are not yet entitled to call yourself an investor.

No comments: