I admit, I’m a junkie for the vast library of Wall Street pearls of wisdom we’ve accumulated over the years, I know them and frequently quote them all. If you don’t have the master list, it’s over at Barry’s site, btw. But the problem is knowing when which one applies when and recognizing that they all disagree with each other!
One of my favorite finance bloggers of all time, Cassandra Does Tokyo, is out with a backboard-shattering post revealing the titanic level of bullsh*t embedded in our so-called Golden Rules of Investing.
Keep this bad boy in a file somewhere and reference it when the experts tell you how to invest with their aphorisms and “market wisdom” crutches.
#25-3/4. Do as I do – not as I say – but do it without delay! (NB: 13F-HR’s are too late!)
#25-1/2. The trend is your friend….errrr….ummm…..except when its not.
#25-1/4. Whatever kind of metaphorical market animal you are (bull, coq, chicken, weasel, whatever), always remember that Pigs Get Slaughtered.
#25. Buy “The Best of Breed” companies…..unless they are priced at levels preceding the moment when Pigs Get Slaughtered, or when the trend is not your friend, or I am saying the opposite of what I am doing.
#24. NEVER short “Best of Breed” companies…except when Pigs Are Getting Systematically Slaughtered in other “Best of Breed” companies (but don’t get piggy puking out the pigs).
#23. Cut your losses short and let your winners ride – but not when pigs are getting slaughtered
#22. No one ever made a dime by panicking … unless apparently you’re following the previous rule #23 which says you should cut your losses short and let your winners ride.
Yes, please read the rest: