I’ve posted Entry #30 for my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called What If Everything You Thought You Knew About Stock Investing Turned Out to Be Wrong?
Juicy Excerpt: No one else is saying that. No one else is saying anything even close to that. So this is a big deal. If that claim holds up, this is the biggest advance in our understanding of how stock investing works in history, no? I am saying here that price drops are a good thing and that price increases are a bad thing. I am turning the conventional understanding of how stock investing works on its head.
Anonymous says
buy low, sell high—duh
Rob says
There are millions of smart and good people who today believe that Buy-and-Hold strategies can work, Anonymous. I know. I have spoken to and interacted with a good number of them.
I am not ashamed to acknowledge that there was a time when I believed this myself. Buy-and-Hold has been widely promoted for many years now. When we hear a message being repeated over and over again by people we respect, we come to believe that there is something to it. All advertising is rooted in this reality of human nature.
In short — we’ve been had.
Rob