Quote for the Week
The enchantment which some growth companies convey to the stock market lends a premium to their common stocks which is not always justified by the statistical background. An investor may do well with such stocks, but there is good reason to believe that he can do even better by giving the financial results…a completely cold-blooded and objective analysis. No amount of study in this area can minimize the importance of trying to buy at a fair price; buying at any price and hoping that the future will take care of itself is a good short cut to disappointing results.
Indeed, perhaps the most important conclusion of this analysis is that the term “growth stock” is meaningless; a growth stock can be identified only with hindsight — it is simply a stock which went way up. But the concept of “growth company” can be used to identify the most creative, most imaginative management groups; and if, in addition, their stocks are valued at a reasonable ratio…the odds are favorable for appreciation in the future. — Peter Bernstein (source)
From the Archives
Last Call
- Marks Memo: The Folly of Certainty – Oaktree
- The Risks We Miss – Humble Dollar
- How the World Sped Up – Forking Paths
- Why International Investing Makes Sense for Long-Term Investors – J. Rekenthaler
- The Superior Returns of Cyclical Stocks – Klement on Investing
- Neglecting Equilibrium – Verdad
- How Benjamin Graham Survived World Panic on Wall Street – Beyond Ben Graham
- The Munger Series: Learning from Benjamin Franklin – Investment Master Class
- The Spectacular Rise and Surprising Staying Power of the George Foreman Grill – The Hustle
- We Asked: “How Do You Price Your Wine List?” – Punch