The intelligent investor should be interested in the possibilities of profiting from these pendulum swings. There are two possible ways by which he may try to do this: the way of timing and the way of pricing.
This first one is timely as the stock market is currently in a blue funk
As an individual investor I have to recognize that I am unlikely to think of something the brains of Wall Street haven’t thought of, or see things the brains of Wall Street have missed, or have insights they don’t possess.
No doubt some qualities are ‘bred in the bone’. But, it also seems some children learn how to be more confident, to have higher executive control and to be more willing to trust experimenters who offer double treats.
Clearly it is not a moaty Warren Buffett enterprise. But, over the next five years or so it has the potential to become one.
Stocks in highly cyclical industries have to be treated quite differently than other industries or sectors because of the cycles.
One way to be adept at avoiding failure is to avoid attempting anything you might fail at
Things are almost never clear on Wall Street, or when they are, then it’s too late to profit from them.
Movies goers will report liking a movie more when they hear beforehand how good it is
The Tags Index on the home page gives easy access to over 130 great posts on everything from Investment Psychology to Warren Buffett’s concept of Economic Goodwill vs Accounting Goodwill.
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