The World Motivation
People forget that although we can pinpoint the price, we can only guess at future earnings. The past isn't much help: It simply tells whether a market was pricey or cheap.
“People forget that although we can pinpoint the price, we can only guess at future earnings. The past isn't much help: It simply tells whether a market was pricey or cheap.”
— Barry Ritholtz · Cheap
People forget that although we can pinpoint the price, we can only guess at future earnings. The past isn't much help: It simply tells whether a market was pricey or cheap.
Yearly data put the rest of the noise into perspective. Most of the weekly or monthly random up-and-down movements get smoothed out. Ultimately, this is where long-term investors should be focused.
No one knows what the top-performing asset class will be next year. Lacking this prescience, your next-best solution is to own all of the classes and rebalance regularly.
Whenever you try to pick market tops and bottoms, you are making a prediction. Guessing what stock is going to outperform the market is forecasting, as is selling a stock for no apparent reason. Indeed, nearly all capital decisions made by most people are unconscious predictions.
Talk is cheap; play the game.
It isn't as important to buy as cheap as possible as it is to buy at the right time.
I always looked at 'All In' with the perspective that it's about the present and future of the industry and not really about cheap pops, even though I'm sure they'll be plenty of those on the show.
Consistency is the paste jewel that only cheap men cherish.
Cheap wine is defined by its price, and it depends on personal spending limits. So for me, any wine under $10 is cheap.