To us at Smead Capital Management, there are some divine laws that govern the stock market over long time periods.
Interest rates are like gravity to P/E ratios (Warren Buffett)
Euphoric episodes end badly (Galbraith)
Cheap stocks outperform expensive stocks over long time periods (Benjamin Graham)
Performance is enhanced by buying extreme pessimism (John Templeton)
Every stock which goes up 10-fold had to double and quadruple first (Smead)
Young people who buy stocks on borrowed money lose (Edwin Lefevre-Reminisces of a Stock Market Operator)
Most investors suffer stock market failure (Dalbar)
No comments:
Post a Comment