One should have two hopes for the stock market: one, that the market goes up and the other, that it goes down. This seeming split personality contains thinking that should be behind one’s investment strategy.
Any prediction based on models can be overwhelmed by what happens in the real world
The investor does not have to be an expert in macro-economic theory.
The investment principles around selling losers and holding winners are one of the most important and subtle topics in investing; laden with psychological pitfalls
In sports, in war and in the battle for investment survival it is helpful to distinguish between strategy and tactics.
I cannot understand why an investor of that sort elects to put money into a business that is his 20th favorite
We give up on trying to attain perfection or ascertain when the bottom has been reached
If a company’s capital expenditures are simply maintaining the company’s position in its markets, it free cash flow may be unduly high
The sell side analyst’s target prices do not estimate fair value. DCF estimates do just that. Investors should not confuse the two.
Plan for the worst. Hope for the best. And don’t agonize.