Take Your Time
by John Train from The Craft of Investing
The first rule is to wait until you're sure. Be fussy. In fact, good investing is an exercise in controlled fussiness.
Investment is a "loser's game," like club tennis. Most points are lost on errors, rather than won by forcing shots. Since the investor never has to act, he should focus on not make avoidable mistakes. An enthusiastic retail investor often pays up for an exciting conception. Then there is an earnings disappointment, the market becomes disillusioned, and the price drops severely: a double play in reverse, as it were. Misery! So remember that the safest strategy is being very hard to please. Insist on waiting for a stock to satisfy you completely before you risk your capital. All the information you need should be available, and what you learn should satisfy you; that it's a company you want to be part of. What's the hurry? There are plenty of other possibilities, thousands, in fact. So, take your time.
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