All the great value investors from Benjamin Graham to Peter Lynch and Warren Buffett agree that the short term movements (over a few months) are irrelevant to good investing except that they might offer the opportunity to buy at a bargain price if other investors are being foolish.
The investor must concentrate on the underlying business of the company in question and not waste time trying to achieve the impossible.
Buying and selling on the prediction of market movements is likely to result in very poor performance, as the investor is likely to be optimistic and pessimistic at precisely the wrong times.
On top of which there are the additional costs of frequent trading – transaction costs and taxes.
‘Every year I talk to the executives of a t…To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
Prof. Glen Arnold
I'm a full-time investor running my portfolio from peaceful Leicestershire countryside. I also happen to be UK´s best selling investment book author and a Financial Times Best selling author.
Originally, I wrote all my ideas out in full on this website. Now that ADVFN publish them they are entitled to display the full version for six months – you can see them here. Thus can I only post the first few paragraphs here for anything younger than six months.
I write 2 to 3 newsletters per week - investing is about making the right decisions, not many decisions.