Investing is not Gambling

Since there is a long-term positive expectancy in equity investments, buying stocks is not a gamble in the normal sense — a lottery ticket, a trip to the track, or a basketball pool.  Why do so many investment authors use gambling terminology and analysis? There are two very good reasons. Gambling activities often permit an […]

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Why not wait?

One acknowledged investment strategy for market timing is to stay with the major trend.  A problem with this method lies in the execution.  Can the individual investor "pull the trigger" at the right time? An interesting example occurred on January 3, 2001.  The Greenspan Fed surprised the market.  Here is the report from the next […]

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The Big Mistake: A Compelling Example

Take a look at this interesting example: "Imagine that you had encountered Warren Buffett at the end of 1975. Impressed with his intellect and investment approach, you would have naturally examined his track record — and almost certainly, to your everlasting regret, not invested. Why? Because his results, as measured by the stock price of […]

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The Biggest Investor Mistake

For most people, the information in today’s post is probably more important than any other single fact they can learn about investing.  Understanding and following this advice could make a million-dollar difference for a middle-class family thinking about college and retirement. The problem is that the advice is extremely difficult to follow.  Since very few […]

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