Without bear markets to take stock prices back down, anyone waiting to "buy low" will feel completely left behind - and all too often, will end up abandoning any former caution and jumping in with both feet.
That's why Graham's message about the importance of emotional discipline is so important.
From October 1990 through January 2000, the Dow Jones Industrial Average marched relentlessly upward, never losing more than 20% and suffering a loss of 10% or more only three times.
This was the second - longest uninterrupted bull market of the past century; only the 1949 - 1961 boom lasted longer.
The longer a bull market lasts, the more severely investors will be afflicted with amnesia.
After five years or so, many people no longer believe that bear markets are even possible.
All those who forget are doomed to be reminded; and, in the stock market, recovered memories are always unpleasant.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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