Investment in Stocks

Posts Tagged ‘great investors’

Philosophy of Great Investors II

“Be fearful when others are greedy. Be greedy when others are fearful.”Warren Buffett. Chairman, Berkshire Hathaway

“The basic question facing us is whether it’s possible for a superior investment manager to underperform….The assumption widely held is ’no.’ And yet if you look at the records, it’s not only possible, it’s inevitable.”

Robert Kirby. Founder, Capital Guardian Trust Company

Recognize That Short-Term Underperformance Is Inevitable

Almost all great investment managers go through periods of underperformance. Build this expectation into your hiring decisions and also remember it when contemplating a manager change.

“The function of economic forecasting is to make astrology look respectable.”

John Kenneth Galbraith. Economist and Author

Disregard Short-Term Forecasts and Predictions

Don’t make decisions based on variables that are impossible to predict or control over the short term. Instead, focus your energy toward creating a diversified portfolio, developing a proper time horizon and setting realistic return expectations

“You make most of your money in a bear market, you just don’t realize it at the time.”

Shelby Cullom Davis. Diplomat, Legendary Investor and Founder of the Davis Investment Discipline

Click HERE to book a Free Investing Workshop.

Sean Sean
Master Trainer (Value Investing Options Strategy)
Investment in Stocks Blog
Value Investing Academy – the Warren Buffet Way
http://www.investment-in-stocks.com

 

Philosophy of Great Investors

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”

Benjamin Graham. Father of Value Investing

Avoid Self-Destructive Investor Behavior

Chasing the hot-performing investment category or making major tweaks to your long-term investment plan can sabotage your ability to build wealth. Instead, work closely with your financial advisor to outline your long-term goals, develop a plan to achieve them and set the expectation that you will stick with that plan when faced with difficult periods for the market.

“History provides a crucial insight regarding market crises: They are inevitable, painful, and ultimately surmountable.”

Shelby M.C. Davis. Legendary Investor

Understand That Crises Are Inevitable

Crises are painful and difficult, but they are also an inevitable part of any long-term investor’s journey. Investors who bear this in mind may be less likely to react emotionally, more likely to stay the course, and be better positioned to benefit from the long-term growth potential of stocks.

“Despite inevitable periods of uncertainty, stocks have rewarded patient, long-term investors.”

Christopher C. Davis. Portfolio Manager, Davis Advisors

Understand While Painful, Crisis Creates Opportunity

Low prices can increase future returns. Investors who bear this in mind are more likely to endure hard times and be there to benefit from the subsequent periods of recovery.

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.”

Peter Lynch. Legendary Investor and Author

Don’t Attempt to Time the Market

Investors who understand that timing the market is a loser’s game will be less prone to reacting to short-term extremes in the market and more likely to adhere to their long-term investment plan.

Click HERE to book a Free Investing Workshop.

Sean
Master Trainer (Value Investing Options Strategy)
Investment in Stocks Blog
Value Investing Academy – the Warren Buffet Way
http://www.investment-in-stocks.com