The four most dangerous words in investing are: ‘this time it’s different’
If you want to have a better performance than the crowd, you must do things differently from the crowd.
In my 45-year career as an investment counselor, humility did show me the need for worldwide diversification to reduce risk. That career did help me to become more and more humble because statistics showed that when I advised a client to buy one stock to replace another, about one-third of the time the client would have done better to ignore my advice. In other endeavors, humility about how little I know has encouraged me to listen more carefully and more wisely.
Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.
If we become increasingly humble about how little we know, we may be more eager to search.
An investor who has all the answers doesn’t even understand the questions.
4What to Ask
People are always asking me where is the outlook good, but that’s the wrong question …
If you begin with prayer, you will think more clearly and make fewer mistakes.
2Outlooks and Trends
Focus on value because most investors focus on outlooks and trends.
1When to Sell
Sell when you find a much better bargain to replace what you are selling.