wazua Tue, Dec 3, 2024
Welcome Guest Search | Active Topics | Log In | Register

Coin-flippers, eyes glued on the scoreboard.
muganda
#1 Posted : Monday, February 24, 2014 6:02:36 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
The sage of Omaha has just insulted what we while our way doing here in Wazua:
- watching prices of shares
- making predictions of the market or economy

He's outlining certain fundamentals to investing and they are so straightforward. So why have we converted ourselves to coin-flippers whose eyes are glued to scoreboards? Is it likely we'd all be making more money if NSE never began this live data feeds? I now understand why @young took a hiatus.

1. When promised quick profits, respond with a quick "no."

2. If you don't feel comfortable making a rough estimate of an asset's future earnings, just forget it and move on.

3. If you focus on the prospective price change of a purchase, you are speculating. Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game.

4. Games are won by players who focus on the playing field -- not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.

5. Forming macro opinions or listening to the macro or market predictions of others is a waste of time. I am reminded of Mickey Mantle's scathing comment: "You don't know how easy this game is until you get into that broadcasting booth."


READ IT, IT MAY CHANGE YOUR LIFE
muganda
#2 Posted : Tuesday, February 25, 2014 7:56:42 AM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
Good morning, some more outrageous excerpts from the same article:


(Remember the late Barton Biggs’s observation: “A bull market is like sex. It feels best just before it ends.”)


In aggregate, American business has done wonderfully over time and will continue to do so (though, most assuredly, in unpredictable fits and starts). The goal of a nonprofessional investor should not be to pick winners — neither he nor his “helpers” can do that — but should rather be to own a cross section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.


Before reading Ben Graham's - The Intelligent Investor , I had wandered around the investing landscape, devouring everything written on the subject. Much of what I read fascinated me: I tried my hand at charting and at using market indicia to predict stock movements. I sat in brokerage offices watching the tape roll by, and I listened to commentators. All of this was fun, but I couldn’t shake the feeling that I wasn’t getting anywhere.

Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2024 Wazua.co.ke. All Rights Reserved.