Hi Dave, Benjamin Graham's classic, "Security Analysis"
It will take me a decade to read and understand 616 pages. <g> Thanks for the assignment!!!
[snip]
But a rigid observance of old-time canons of common-stock investment would have dictated the sale of one’s holdings at a substantial profit very early in the upswing and a heroic abstinence from further participation in the market until at some point after the 1929 (or 2000) collapse when prices were again attractive in relation to earnings and other analytical factors. No doubt this would have resulted in making repurchases too soon—as matters turned out—with consequent paper or actual losses.
[snip]
But here again we must recognize that the psychology of the speculator militates strongly against his success. For, by relation of cause and effect, he is most optimistic when prices are highest and most despondent when they are at the bottom. Hence, in the nature of things, only the exceptional speculator can prove consistently successful, and no one has a logical right to believe that he will succeed where most of his companions must fail. For this reason, training in speculation, however intelligent and thorough, is likely to prove a misfortune to the individual, since it may lead him into market activities which, starting in most cases with small successes, almost in variably end up in major disaster.
Keith@book_report.org
PS - Just crossed page 50... |
