An investment is a favourable bet. Gambling is an unfavourable bet.
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.
Too many investors focus on “outlook” and “trend.” Therefore, more profit is made by focusing on value
Something that is over and above what is strictly necessary and that is designed to provide for emergencies
You may be the greatest stock picker in the world, but if you follow the wrong investment process/ the wrong investment style/ wrong Principles of Operation your investing will not be successful.
The betting errors made by the subjects included over-betting, under-betting, erratic-betting and betting based on previous flips
Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.
When we dig into it, it may not perform as well as we expect; it may carry more risks than we expect; and, there is a better way.
Sometimes the investment climate calls for a somewhat unbalanced portfolio.
This approach has worked