The stock market is a conduit for transferring wealth from those who confuse price with value to those who do not, and from the impatient to the patient.
An investor, armed with knowledge of what their stock is worth, will sit tight and ony buy and sell when the price created by speculative traders is most advantages. Real investors don't generate a lot of brokerage fees.
Also, if a recommendation by advisory newsletters is not accompanied by an assessment of value and the business performance that created the value, a stock can only be bought on faith and sold on ignorance.
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.
Wednesday 5 November 2008
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