Unfortunately in this kind of work, where you are trying to determine relationships based upon past behavior, the almost invariable experience is that by the time you have had a long enough period to give you sufficient confidence in your form of measurement, just then new conditions supersede and the measurement is no longer dependable for the future.
Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble… to give way to hope, fear and greed.
The investor’s chief problem—and even his worst enemy—is likely to be him self.
Individuals who cannot master their emotions are ill-suited to profit from the investment process.
You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.
Wondering Whom to Read Next?
- Warren Buffett American Investor
- George Soros Hungarian-American Investor
- Harry Browne American Politician
- Guy Kawasaki American Investor
- Charlie Munger American Investor, Philanthropist
- Jesse Lauriston Livermore American Investor
- Richard Rainwater American Investor
- Ray Dalio American Investor
- Mohnish Pabrai Indian-American Investor, Philanthropist
- James Harvey Robinson American Historian