The conviction to hold, page-7

Thank you Mabrook,

I absolutely love reading that article and I spotted something on another forum recently and I went back to have a re-read today. I thought it was very worthwhile posting here as it contains a lot of the same sentiments So due credit to "unbelievable" on the imu forum...

Apo!

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I often like to read an old favourite investing book with quotes from one of the all time great American investors , Philip Fisher. I have learnt and profited so much from this book, the lessons are invaluable and every person should be given this book if they want to invest in the stock market. Dont waste your time reading it if you are really looking for the Casino.

Philip A. Fisher, Common Stocks and Uncommon Profits and Other Writings

"
Even in those earlier times, finding the really outstanding companies and staying with them through all the fluctuations of a gyrating market proved far more profitable to far more people than did the more colorful practice of trying to buy them cheap and sell them dear."

"Conversely, as such a stock rises to, say, 50 or 60 or 70, the urge to sell and take a profit now that the stock is “high” becomes irresistible to many people. Giving in to this urge can be very costly. This is because the genuinely worthwhile profits in stock investing have come from holding the surprisingly large number of stocks that have gone up many times from their original cost. The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock."

"One, which I mention several times elsewhere, is the need for patience if big profits are to be made from investment. Put another way, it is often easier to tell what will happen to the price of a stock than how much time will elapse before it happens. The other is the inherently deceptive nature of the stock market. Doing what everybody else is doing at the moment, and therefore what you have an almost irresistible urge to do, is often the wrong thing to do at all
"