Hopelessly Devoted To Technology Stocks

These Pied Pipers know that “there’s no getting over” this frenzied episode and investors who were made rich by this momentous phenomena usually become “fools who are willing to sit around and wait for” the next bull market in tech/growth stocks. History shows that it could be 10-20 years of “sitting around and waiting!” When you are trapped in a euphoric episode, you keep the tulip bulb, the worthless South Seas certificate, the Simplicity Pattern shares, and the Lucent stock certificate. In stock market failure, “there’s nothing else for investors to do, they are hopelessly devoted to you.”

However, we all have a choice. We can either watch cable news or we can watch the History Channel. When you watch cable news, they deliver information to you which breeds a great deal of anxiety. We don’t know how these sensationalized events will play out, but we are glued to the TV as it does. When we watch the History Channel, no matter how horrific the historical setting was, anxiety doesn’t set in because we know the outcome. Therefore, we must practice an investment discipline that is closely tied to allowing history to reward us as it plays out.

How do you invest like the History Channel? First, you practice a long-duration discipline. Second, you should emphasize things which are the most likely to reward you over five to ten years like value pricing, generous free-cash flow, and the meeting of economic needs. Third, you use peaks of pessimism in the stock market and individual industries to add to your investments. Fourth, you avoid financial euphoria episodes like the plague. The number one source of stock market failure is getting lured into overly-popular stocks and getting caught as the popularity unwinds. When the rains come, you need to be in the Ark, not invested in it.

But now there’s nowhere to hide
Since you pushed my love aside
I’m out of my head
Hopelessly devoted to you

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Disclosure: This article contains information and opinions based on data obtained from reliable sources, which is current as of the publication date, and does not constitute a recommendation ...

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