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
What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid?
A high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.
Today’s FAAMGNs, that is today’s ‘vital few’, will not be the ‘vital few’ 20 years from now
Today’s investor cannot tell what percentage gain in earnings, dividends and prices he may expect in the next ten years