To make money in stocks you must have
~VISION TO SEE THEM
~COURAGE TO BUY THEM
~PATIENCE TO HOLD THEM
“100 to 1 in the Stock Market” by Thomas W Phelps is arguably the best source to understand how to hold businesses for decades.
Top 20 learnings
Grab a 🍿
Here we go. 🙂
~VISION TO SEE THEM
~COURAGE TO BUY THEM
~PATIENCE TO HOLD THEM
“100 to 1 in the Stock Market” by Thomas W Phelps is arguably the best source to understand how to hold businesses for decades.
Top 20 learnings
Grab a 🍿
Here we go. 🙂
1.
Those of us who ask little of life get little.
Those who ask much get much.
Those who ask too much get nothing.
Those of us who ask little of life get little.
Those who ask much get much.
Those who ask too much get nothing.
2.
People who bet on all the horses in a race always have a winner but never make any money.
People who bet on all the horses in a race always have a winner but never make any money.
3.
Stay with your most successful stock investments as long as companies are increasing their earnings.
Stay with your most successful stock investments as long as companies are increasing their earnings.
4.
Never forget that people whose self-interest is diametrically opposed to your own are trying to persuade you to act every day. Try to find people whose interests correspond with yours.
Never forget that people whose self-interest is diametrically opposed to your own are trying to persuade you to act every day. Try to find people whose interests correspond with yours.
5.
Far more money can be made by good stock selection than by good stock market timing
Far more money can be made by good stock selection than by good stock market timing
6.
How often we fool ourselves into selling winners:
~My stock is too high
~I need the CG to offset the realized CL
~My stock isn't moving. Others are
~I can't put up more money to meet my margin call
~Taxes will be higher next yr
~New Management
~New Competition
How often we fool ourselves into selling winners:
~My stock is too high
~I need the CG to offset the realized CL
~My stock isn't moving. Others are
~I can't put up more money to meet my margin call
~Taxes will be higher next yr
~New Management
~New Competition
7.
Thinking too much about what the market is going to do can be expensive, even when one is right. Even if one knew what the stock market was going to do, it could still be more profitable to forget it and concentrate on trying to find the right stock to buy.
Thinking too much about what the market is going to do can be expensive, even when one is right. Even if one knew what the stock market was going to do, it could still be more profitable to forget it and concentrate on trying to find the right stock to buy.
8.
The advantage the little man has over the big man in hunting elephants in Wall Street is that the little man’s gun makes much less noise. Unfortunately, if the little man’s arm is good, he soon loses that advantage by becoming a big man.
The advantage the little man has over the big man in hunting elephants in Wall Street is that the little man’s gun makes much less noise. Unfortunately, if the little man’s arm is good, he soon loses that advantage by becoming a big man.
9.
A survey of big winners in the stock market emphasizes that it is more important to be right than be quick.
What one buys in the stock market is much more important than when one buys it.
A survey of big winners in the stock market emphasizes that it is more important to be right than be quick.
What one buys in the stock market is much more important than when one buys it.
10.
To win in the stock market, as in checkers, one must think at least one move further ahead than the other fellow.
To win in the stock market, as in checkers, one must think at least one move further ahead than the other fellow.
11.
"HE HAD NOT EVEN ONCE SOLD A STOCK IN THE HOPE OF BUYING IT BACK CHEAPER AND LATER BOUGHT IT BACK."
He, above, is Mr. Kennedy, the chairman of SEC, who said this on inside information, “If I had all the money that has been lost on inside information, I’d really be rich.”
"HE HAD NOT EVEN ONCE SOLD A STOCK IN THE HOPE OF BUYING IT BACK CHEAPER AND LATER BOUGHT IT BACK."
He, above, is Mr. Kennedy, the chairman of SEC, who said this on inside information, “If I had all the money that has been lost on inside information, I’d really be rich.”
12.
"BUYING RIGHT WILL DO YOU LITTLE GOOD UNLESS YOU HOLD ON. BUT HOLDING ON WILL DO YOU LITTLE GOOD AND MAY EVEN DO GREAT HARM-UNLESS YOU HAVE BOUGHT RIGHT."
"BUYING RIGHT WILL DO YOU LITTLE GOOD UNLESS YOU HOLD ON. BUT HOLDING ON WILL DO YOU LITTLE GOOD AND MAY EVEN DO GREAT HARM-UNLESS YOU HAVE BOUGHT RIGHT."
13.
The fallacy of using P/E Ratios for comparative purposes is the implied assumption that the earnings are as comparable as prices. (A steady debt-free company with high FCF capacity will always command a higher P/E compared to a cyclical company with high debt and low ROE)
The fallacy of using P/E Ratios for comparative purposes is the implied assumption that the earnings are as comparable as prices. (A steady debt-free company with high FCF capacity will always command a higher P/E compared to a cyclical company with high debt and low ROE)
14.
When the business begins to get stately, wise investors quietly get out from under. For, monuments rarely pay dividends.
When the business begins to get stately, wise investors quietly get out from under. For, monuments rarely pay dividends.
15.
For most people, investing abroad amounts to fleeting from hazards they can see to hazards they cannot see. Too often, such capital movements glorify hindsight rather than manifest foresight.
For most people, investing abroad amounts to fleeting from hazards they can see to hazards they cannot see. Too often, such capital movements glorify hindsight rather than manifest foresight.
16.
"When things are that bad they have to get better or nothing will matter. I hope and pray that neither you nor I will be given that kind of investment opportunity. But if we are, let’s not run away from it."
"When things are that bad they have to get better or nothing will matter. I hope and pray that neither you nor I will be given that kind of investment opportunity. But if we are, let’s not run away from it."
17.
We do not know, never have known, and never can know what the future holds. If by chance, it should be very much better than the wisest can foresee, there is only one investment policy that can take advantage of it. That is the policy of buying right and holding on.
We do not know, never have known, and never can know what the future holds. If by chance, it should be very much better than the wisest can foresee, there is only one investment policy that can take advantage of it. That is the policy of buying right and holding on.
18.
"A little more on buying for keeps, a little more determination not to be tempted to sell your winners just because they have gone up in price may fatten your portfolio. It could cost you-as it has cost me much less to try it than not to try it."
"A little more on buying for keeps, a little more determination not to be tempted to sell your winners just because they have gone up in price may fatten your portfolio. It could cost you-as it has cost me much less to try it than not to try it."
19.
Every sale should be recognized as a confession of error-a lost opportunity. There will be many such errors, of course. Making money is not easy & never will be. But it is helpful in trying to make money to have the right target, to keep one’s thinking straight.
Every sale should be recognized as a confession of error-a lost opportunity. There will be many such errors, of course. Making money is not easy & never will be. But it is helpful in trying to make money to have the right target, to keep one’s thinking straight.
20.
In "Alice in Wonderland" one had to run fast in order to stand still. In the stock market, the evidence suggests, one who buys right must stand still in order to run fast.
In "Alice in Wonderland" one had to run fast in order to stand still. In the stock market, the evidence suggests, one who buys right must stand still in order to run fast.
That's it.
~Read
~Re-read
~Learn
~Internalize
~Practice
And if you find it valuable, Like & Retweet🙂
~Read
~Re-read
~Learn
~Internalize
~Practice
And if you find it valuable, Like & Retweet🙂
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