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I think the author was contrasting being a “fair-weather,” unknowledgeable investor (in the stock market, or by analogy in prorjects) who buys in when things ar
by dgreensp 9y ago
I think the author was contrasting being a “fair-weather,” unknowledgeable investor (in the stock market, or by analogy in prorjects) who buys in when things are going up and pulls out when they go down, versus being a committed, knowledgeable investor who waits for a specific opportunity.
- almost_usual 9y agoThe analogy makes sense but is much easier to see in hindsight. Plenty of people during the Depression bought stock after they believed the market bottomed out only to witness their wealth go to nothing because the market continued shrinking after short periods of growth. It’s almost impossible to know whether a crash has turned around when it’s happening. Dollar cost averaging, diversifying assets, and keeping liquid on hand is easier than trying to predict the market.
- valuearb 9y agoMost who bought stocks after the 1929 crash and held made very good money during the depression. The average dividend yield of the S&P index during the 1930s was about 7.8% per year.