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(02-03-2015, 09:27 AM)CityFarmer Wrote:(02-03-2015, 07:56 AM)specuvestor Wrote: I think this statement is loaded and amazing:
" In the past 50 years, we have only once realized an investment loss that at the time of sale cost us 2% of our net worth. Twice, we experienced 1% losses. All three of these losses occurred in the 1974-1975 period, when we sold stocks that were very cheap in order to buy others we believed to be even cheaper."
Rotating for better stocks, isn't as "speculative" as we normally thought.
The statement is also consistent with Mr. Buffett quote, "Never lose money".
"Never lose money", but ok to "lose to make even more".
Its not "speculative", if its an informed decision. With limited capital, all the more important to rotate from time to time, when opportunities arise.
But, for the many, its mentally tormenting to sell those stocks already cheap to buy cheaper ones.
Easier said than done, but (to some extent) its a truism that is necessary to succeed in the markets.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.