Investment not speculation

If we are going to cope with market declines we need to understand them.  Great investors have been through many wild markets.  They offer us their insights:

Speculators often prosper through ignorance; it is a cliché that in a roaring bull market knowledge is superfluous and experience a handicap.  But the typical experience of a speculator is one of temporary profit and ultimate loss.

Benjamin Graham

The only principle of timing that has ever worked well consistently is to buy common stocks at such times as they are cheap by analysis, and to sell them at such time as they are dear, or at least no longer cheap, by analysis….it requires no opinion as to the future of the market; because if you buy securities cheap enough your position is sound, even if the market should continue to go down.

Benjamin Graham

I had seen enough of in and out trading, including some done by extremely brilliant people, that I knew that being successful three times in a row only made it that much more likely that the fourth time I would end in disaster.

Philip

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