Money and Finance
From Phil Fisher in Common Stocks and Uncommon Profits:
Related excerpt from Tren Griffin in Charlie Munger: The Complete Investor:
- More From Phil Fisher On Diversification
From Common Stocks and Uncommon Profits and Other Writings: Usually a very long list of securities is not a sign of the brilliant investor, but of one who is unsure of himself. If the investor owns stock in so many companies that he cannot keep in touch...
- Pay Attention To Mistakes Of Omission, But Don't Suffer Over Them.
From a learning perspective, paying attention to mistakes of omission is useful, but it's also important to keep the right attitude and not let "missing out" affect they way you do things going forward. I've recently re-read some excerpts from...
- Make The Most Of Your Investing Mistakes
Like most people, I don't like being wrong. Trouble is, I'm wrong quite often. To err is human, after all, and I've come to accept the fact that I'll make incorrect choices in the course of everyday life, such as the time I was about...
- A Simple Guide To Selling Stocks
Last weekend, a good friend came to town for a visit. We both started our financial careers on the same day -- and in the same training room, in fact -- but our career paths diverged a few years ago when he went the financial planning route and I went...
- Taking The E-motions Out Of Investments
Taking the (E)motions out of Investments? Easier said than done. When you invest your money, I'm assuming you're investing after a thorough thought process. One does not simply invest his/her money based on the "TOP 20 SHARES TO INVEST IN 2015"...
Money and Finance
The cost of self-indulgence...
From Phil Fisher in Common Stocks and Uncommon Profits:
...there is a complicating factor that makes the handling of investment mistakes more difficult. This is the ego in each of us. None of us likes to admit to himself that he has been wrong. If we have made a mistake in buying a stock but can sell the stock at a small profit, we have somehow lost any sense of having been foolish. On the other hand, if we sell at a small loss we are quite unhappy about the whole matter. This reaction, while completely natural and normal, is probably one of the most dangerous in which we can indulge ourselves in the entire investment process. More money has probably been lost by investors holding a stock they really did not want until they could “at least come out even” than from any other single reason. If to these actual losses are added the profits that might have been made through the proper reinvestment of these funds if such reinvestment had been made when the mistake was first realized, the cost of self-indulgence becomes truly tremendous...................
Related excerpt from Tren Griffin in Charlie Munger: The Complete Investor:
The deprival super-reaction tendency is more commonly called loss aversion, and it can cause investors to irrationally avoid risk when they face potential for gain, but irrationally seek risk when there is a potential for loss. In other words, people tend to be too conservative in seeking gains and too aggressive in seeking to avoid losses. The most important point to remember about this tendency is that it causes investors to do things like sell stocks too early and hold on to them for too long. It is very common for investors to hold on to losing stocks in the hope that somehow the price will rise and they will somehow break even.
- More From Phil Fisher On Diversification
From Common Stocks and Uncommon Profits and Other Writings: Usually a very long list of securities is not a sign of the brilliant investor, but of one who is unsure of himself. If the investor owns stock in so many companies that he cannot keep in touch...
- Pay Attention To Mistakes Of Omission, But Don't Suffer Over Them.
From a learning perspective, paying attention to mistakes of omission is useful, but it's also important to keep the right attitude and not let "missing out" affect they way you do things going forward. I've recently re-read some excerpts from...
- Make The Most Of Your Investing Mistakes
Like most people, I don't like being wrong. Trouble is, I'm wrong quite often. To err is human, after all, and I've come to accept the fact that I'll make incorrect choices in the course of everyday life, such as the time I was about...
- A Simple Guide To Selling Stocks
Last weekend, a good friend came to town for a visit. We both started our financial careers on the same day -- and in the same training room, in fact -- but our career paths diverged a few years ago when he went the financial planning route and I went...
- Taking The E-motions Out Of Investments
Taking the (E)motions out of Investments? Easier said than done. When you invest your money, I'm assuming you're investing after a thorough thought process. One does not simply invest his/her money based on the "TOP 20 SHARES TO INVEST IN 2015"...