More on this book
Kindle Notes & Highlights
Losers hang around with losers while winners hang around with winners.
Put quote on laptop screen!
Let me stress at the outset that the Hunters, like all successful practitioners of what is called ‘dollar-cost averaging’, planned beforehand to buy more shares if a price fell. So they did not go all in on day one. Rather, they invested a lesser amount at the outset and kept some cash on the side – waiting for an opportunity to buy more at a lower price in the future.
This is the difference between doubling down and martingale to dca as a winning strategy
just because something is cheap does not mean you should buy it.
Value investing when you get it wrong
“If you are a know-something investor, able to understand business economics and to find five to ten sensibly-priced companies that possess important long-term competitive advantages, conventional diversification makes no sense for you. It is apt simply to hurt your results and increase your risk. I cannot understand why an investor of that sort elects to put money into a business that is his 20th favourite rather than simply adding that money to his top choices – the businesses he understands best and that present the least risk, along with the greatest profit potential.
Warren Buffet
