“Aside from forecasting the movements of the general market, much effort and ability are directed on Wall Street toward selecting stocks or industrial groups that in matter of price will ‘do better’ than the rest over a fairly short period in the future. Logical as this endeavor may seem, we do not believe it is … Read more
“The investor must demand a satisfactory ratio of earnings to price, a sufficiently strong financial position, and the prospect that its earnings will at least be maintained over the years. This may appear like demanding a lot from a modestly priced stock but the prescription is not hard to fill under all but dangerously high … Read more
It is an indication of the sorry state of affairs in investor education that market linked insurance schemes get more fund inflows than mutual funds in India. The war between the capital market and insurance regulators was never fully resolved, though it led to some changes in structure of market linked insurance plans, and perhaps … Read more
“The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizeable declines nor become excited by sizeable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored. He should never buy a … Read more
“Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times, he will do better if he forgets about the stock market and pays attention to his dividend … Read more
“The true investor scarcely ever is forced to sell his shares, and at all other times he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book, and no more. Thus, the investor who permits himself to be … Read more
“The outright ownership of real estate has long been considered as a sound long term investment, carrying with it a goodly amount of protection against inflation. Unfortunately, real estate values are also subject to wide fluctuations; serious errors can be made in location, price paid etc. Finally, diversification is not practical for the investor of … Read more
“To obtain better than average investment results over a long pull requires a policy of selection or operation possessing a twofold merit: 1) it must meet objective or rational tests of underlying soundness, and 2) it must be different from the policy followed by most investors or speculators.”- The Intelligent Investor In the area of … Read more
“Thus we return to the statement made at the outset, that the kind of securities to be purchased and the rate of return to be sought depend not on the investor’s financial resources but on his financial equipment in terms of knowledge, experience and temperament.”- The Intelligent Investor I have often heard a lot of … Read more