Friday 23 October 2009

The key to success is to do what is not easy.

The key to success is to do what is not easy. What seems very easy will probably prove a mistake. Almost invariably when a buy looks compelling and overwhelmingly obvious, the investor actually is getting in too late.

The best bargains are purchased when the investor has to struggle and debate, afraid even to tell his broker about an idea under consideration.

When he loves the stock because it has treated him so well and wants to stay on board longer to maintain that highly comfortable association, he has overstayed the market.

"We buy (on) wars, earthquakes, coups, assassinations and devaluations. We sell on peace, free-trade agreements and all that other good stuff."

Buying and selling that way is how to succeed, but it always feels like facing into a 100-mph head wind at the time.

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