PATSY PRINCIPLE

PATSY PRINCIPLE

Patsies lose money in stock investment.

Market timers and others with the inability to assess the underlying value of businesses should not even participate in the art of stock selection and investment.

Those so afflicted are like the patsy in poker, the person unaware that his funds will shortly be held by someone else.

Poker and stock-picking are tricky enterprises, not for the overconfident.

Also read: 10 TENETS OF VALUE INVESTING

1. MR. MARKET PRINCIPLE
2. BUSINESS ANALYST PRINCIPLE
3. REASONABLE PRICE PRINCIPLE
4. PATSY PRINCIPLE
5. CIRCLE OF COMPETENCE PRINCIPLE ****
6. MOAT PRINCIPLE
7. MARGIN OF SAFETY PRINCIPLE ****
8. IN-LAW PRINCIPLE
9. ELITISM PRINCIPLE
10. OWNER PRINCIPLE