Quoting Phillip Fisher:
1. It is just appalling the nerve strain people put themselves under trying to buy something today and sell it tomorrow. 2. It's a small-win proposition. 3. If you are a truly long-range investor, of which I am practically a vanishing breed, the profits are so tremendously greater.
1. Someone made a remark that, while it is factually correct, is completely unrealistic when he said, "Nobody ever went broke taking a profit." 2. Well, it is true that you don't go broke taking a profit, but that ASSUMES you will make a profit on EVERYTHING you do. 3. It doesn't allow for the mistakes you're bound to make in the investment business.
1. Funny thing is, I know plenty of guys who consider themselves to be long-term investors but who are still perfectly happy to trade in and out and back into their favourite stocks. 2. Then when their stock got up to a higher price, the pressure to sell got so strong. 3. "Well, why don't we sell half of it, so as to get our bait back?" 4. That is a totally ridiculous argument. 5. Either this is a better investment than another one or a worse one. 6. Getting your bait back is just a question of psychological comfort. 7. It doesn't have anything to do with whether it is the right move or not.