Sunday, August 24, 2008

Back to doing nothing....

Its very important to take losses as quickly as possible. And not let it get to you. In a bear market, my number one aim is to preserve capital. I am waiting for either:
  • the market to turn (which could be any time from now to 12 months later), or else
  • for stocks to become so undervalued that they are a screaming buy (like in the Asian crisis or SARS). With the exception of pfood, I do not see great quality companies trading at bargain prices. There is no blood on the street yet. Maybe if we get a recession....
Back to doing nothing.....

Cat photo from

"One of the best rules anybody can learn about investing is to do nothing, absolutely nothing,unless there is something to do. Most people always have to be playing; they always have to be doing something. They can't just sit there and wait for something new to develop. I wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, 'I just lost my money, now I have to do something to make it back.' No, you don't. You should sit there until you find something."

Jim Rogers

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