What all this means is that value investing works. It really does. Find a business you really like. Wait for the inevitable economic recession to reduce earnings of public companies to start a cycle of fear in the market and the mass selling—also known as a stock market crash—that will bring prices below their values. As most fund managers sell when other fund managers sell, there will be fewer and fewer buyers and the prices go down. Wait for your favorite business to go on sale. Buy. Now sit back and wait for the economic cycle to increase earnings and for the inevitable greed to kick in as
...more
