The way some people are acting today, you would think the world is ending. The same with investors. Every time there’s a little turbulence in the market, like clockwork, investors throw around the blame like a tiny bag of peanuts (too bad you can’t get any on a flight these days).
The laws of investing, like the laws of gravity, are not up for debate. The law of compound interest is not up for debate. Time = money.
The noises you’re hearing today are from the speculators, not the investors. As I wrote to you here:
[T]he first time I read The Intelligent Investor, by Benjamin Graham was in 1997 while working at Fidelity Investments. In Chapter 1: Investment versus Speculation: Results to Be Expected by the Intelligent Investor, Graham points out that anyone who buys a stock is not an “investor.”
In his 1934 book, another that I’m staring at in my office, Security Analysis, co-written with David L. Dodd, the authors attempted to define the term investment versus speculation. “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
Action Line: When you’re ready to talk, email me at ejsmith@yoursurvivalguy.com. I’ll know you’re serious.
