When it comes to portfolios, my personal advice is for anyone who can, put money into forestry or farmland. Long term, you would probably never come near their returns in the stock market. In the world that I see, land is golden.
Jeremy GranthamRead
Investors repeatedly jump ship on a good strategy just because it hasn't worked so well lately, and, almost invariably, abandon it at precisely the wrong time.
Interpretation
What this quote means
This quote emphasizes the importance of patience in investing, warning against abandoning a promising strategy due to temporary setbacks.
David Dreman highlights a common mistake among investors who often give up on good strategies when they face short-term challenges. This impulsive behavior frequently results in exiting positions at inopportune times, suggesting that successful investing requires sustained commitment and the ability to resist emotional responses to market fluctuations.
Themes
InvestingStrategyPatienceTimingRisk
In practice
Example use cases
During a finance seminar, this quote can illustrate the pitfalls of emotional decision-making in investments.
Similar quotes
Just because you buy a stock and it goes up does not mean you are right. Just because you buy a stock and it goes down does not mean you are wrong.
Peter LynchRead
To be an investor you must be a believer in a better tomorrow.
Benjamin GrahamRead
Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of good business conditions. The purchasers view the good current earnings as equivalent to 'earning power' and assume that prosperity is equivalent to safety.
Benjamin GrahamRead
Most investors would be better off in an index fund.
Peter LynchRead
Investing is the intersection of economics and psychology.
Seth KlarmanRead