Test of investor = Time
“Only a longer time span reveals the truly Prudent Man, who knows that the first rule of making money is not to lose.”
What to sell: Sell your loser. Let your winners ride
You can cut your losses and let your profits run, and it shouldn’t bother you at all.
Inaction has a mathematical advantage
Sometimes inaction is the proper course.
On company size: Small is better
“A company with $10 million of sales and something unique can double its profits in a year; a company with $1 billion in sales is simply too big to double its profits in a year; it takes time, energy, and capital for each incremental increase, and none of these factors is infinite, ever.”
Careful when everyone talks about stock market
When everyone knows something, then no one knows anything; the market would soon become too “efficient”; that is, the gap between present and future value would quickly be closed.
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