Quote for the Week
As usual after a recession there are many people in Wall Street who expect further weakness in security prices. But I would like to point out how minor this question is in the light of long-term investment policy. Suppose, a 10 or 15% decline in prices from this level is a fair possibility, what sense would there be for the true investor to take that into account? In the first place, there is still a substantial chance that it won’t happen at all, and, in the second place, if it does happen, there is a still greater chance that he will put his buying orders too low and miss his market. All my experience indicates that the proper method to buy stocks for a particular purpose is to buy them at once, unless you have a definite reason to believe that the price level is too high. — Benjamin Graham (source)
From the Archives
Last Call
- Always Invert – The Better Letter
- Bear Markets are a Necessary Evil – L. Swedroe
- The More Stock Fund Investors Traded, the More It Cost Them – J. Ptak
- The Psychology of Investing: The Seductive Trap of Stories – Safal Niveshak
- Buy the Dip! The Appeal and Dangers in Contrarian Investing! – Musings on Markets
- .220 Hitters & Aging Racehorses – Kingswell
- The (Ludicrous) Psychology of Slot Machines – SatPost
- A Gold Rush of Witnesses – JSTOR Daily