Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.
Let me be clear on one point : I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month or a year from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.
Rational people don’t risk what they have and need for what they don’t have and don’t need.
Volatility caused by money managers who speculate irrationality with huge sums will offer the true investor more chance to make intelligent investment moves. He can be hurt by such volatility only if he is forced, by either financial or psychological pressures, to sell at untoward times.
(About Bitcoin) It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me.
Bitcoin is probably rat poison squared
Despite our policy of candor, we will discuss our activities in marketable securities only to the extent legally required. Good investment ideas are rare, valuable and subject to competitive appropriation just as good product or business acquisition ideas are.
In the long run managements stressing accounting appearance over economic substance usually achieve little of either.
Talking to Time Magazine a few years back, Peter Drucker got to the heart of things : “I will tell you a secret : dealmaking beats working. Dealmaking is exciting and fun, and working is grubby. Running anything is primarily an enormous amount of grubby detail work… dealmaking is romantic, sexy. That’s why you have deals that make no sense.