InvStock

To share a couple of quotes in this uncertain market condition:

* Expect the Unexpected

“If you do not expect the unexpected, you will not find it; for it is hard to be sought out, and difficult.”

~Heraclitus of Ephesus
Greek Philosopher

* Managing Risk

“I don’t lose any sleep as I don’t put money into investment products that I cannot afford to lose. I rode through the crisis of 2008, and will likewise ride through this, by God’s grace.”

~ Andrew Sng
Management Consultant
(The Straits Times, 6th Aug 2011)

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"Wide diversification is only required when investors do not understand what they are doing."

 ~Warren Buffett

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“Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble… to give way to hope, fear and greed."

~Benjamin Graham

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"Great investors conceptualize problems differently than other investors. These investors don’t succeed by accessing better information; they succeed by using the information differently than others."

~ Michael J Mauboussin,
Chief Investment Strategist of Legg Mason Capital Management

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“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

~Warren Buffett

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"Your objective is to buy the best stock with the best earnings at exactly right time and have the patience to hold it until you have been proven right or wrong."

~William J. O’Neil

Note: The above includes the elements of cutting losses and riding the beginning of, hopefully a uptrend.

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“In the short run, the stock market is a voting machine, but in the long run, it’s a weighing machine.”

~ Warren Buffett
Guru Of Value Investing

*   What the above trying to say is that, in the near term, the stock market or the individual stock is pretty much subjected to the opinions of the investors / market players who would ‘vote’ the stocks with their money, but in the longer term, the value of the stock (representing the company) will prevail depending on the performance of the business.

Two important points here – One, in the short term, the stock price is dependent on market sentiment. Two, every stock is a representation of the underlying company, to decide whether a stock is ‘worth it’, take a good look and understand the fundamental of the underlying company.

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