An article in today's newpaper suggested writing out everything we had learned in the previous 12 months. Since we learn from our mistakes, I had no difficulty in composing a long list. As I did, I thought it would be interesting to hear what others in the Cara Community did, right and wrong. What was the most important lesson learned in 2008, a year ripe with opportunities to stumble?
My list was headed by the lesson that a well diversified portfolio of blue chip stocks can, and will, fall in the event of a market collapse. If a rising tide floats all boats, a tsunami sweeps away everything in its path.
I also resolve:
- to listen more carefully to the voices who express opinions contrary to mine. They are sometimes the canaries in the coal mine.
- that cheap stocks can and often do get cheaper and yes, they can go to zero.
- the market is always right. If a stock starts to behave poorly relative to others in the sector - sell it. When in doubt - sell.
- once the stop loss is in place, it becomes the law, no matter how much I "like" the stock.
- when a stock goes straight up (think Potash), take profits before reversion to the mean takes over - and it always will.
My list goes on. What tops yours?
Remember "experience is the name we give our mistakes".
Jeff,
The site looks great. I like the new (larger) font, the edit function, the color change between posts and especially the bookmarking feature. I do agree with NYU's comment that there is a lot of white space but perhaps that is the trade off for easier readability.
I'm not sure what we do to deserve such great work from Bill and his organization but we certainly appreciate having such a valuable resource available to us.
Thanks.
An article in today's newpaper suggested writing out everything we had learned in the previous 12 months. Since we learn from our mistakes, I had no difficulty in composing a long list. As I did, I thought it would be interesting to hear what others in the Cara Community did, right and wrong. What was the most important lesson learned in 2008, a year ripe with opportunities to stumble?
My list was headed by the lesson that a well diversified portfolio of blue chip stocks can, and will, fall in the event of a market collapse. If a rising tide floats all boats, a tsunami sweeps away everything in its path.
I also resolve:
- to listen more carefully to the voices who express opinions contrary to mine. They are sometimes the canaries in the coal mine.
- that cheap stocks can and often do get cheaper and yes, they can go to zero.
- the market is always right. If a stock starts to behave poorly relative to others in the sector - sell it. When in doubt - sell.
- once the stop loss is in place, it becomes the law, no matter how much I "like" the stock.
- when a stock goes straight up (think Potash), take profits before reversion to the mean takes over - and it always will.
My list goes on. What tops yours?
Remember "experience is the name we give our mistakes".
http://events.startcast.com/events/199/B0003/#
Jeff,
The site looks great. I like the new (larger) font, the edit function, the color change between posts and especially the bookmarking feature. I do agree with NYU's comment that there is a lot of white space but perhaps that is the trade off for easier readability.
I'm not sure what we do to deserve such great work from Bill and his organization but we certainly appreciate having such a valuable resource available to us.
Thanks.