Home Bias or Away Home Bias???
Sunday, 27 March 2011
Read? Investing Made Simple by Uncle8888 (10)
Any thing seriously wrong with our bias?
It doesn't really matter when we are still making money over decades in the stock market, over market cycles, and over economic cycles in whatever Bias we may have.
The real and truly tested investing in managing diversity and risk is cash and investment.
Make Hay while Sun shines and avoid pulling Weeds during Winter for the next Summer. That will be sad!
Concepts and theories are good; but nothing beat your own practices and results!
Uncle, what is the meaning of avoid pulling Weeds during Winter for the next Summer?
ReplyDeleteMake Hay while Sun shines (Take profits in Bull market will have larger war chest).
DeletePulling Weeds during Winter (Cut losses on big losers will end up much smaller war chest).
In investing our account size really matters! Even more so to recover from realized losses.