"All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies."
- Warren Buffett
Just like sports, simplicity and staying with the fundamentals will serve you well. Too often I see people trying to execute crazy and complex strategies. Many people do not even clearly understand their own strategies. That is a recipe for disaster.
To be a successful equity investor first requires learning how to identify quality companies and control behavioral biases. The next step is to determine when a stock is cheap or dear relative to the market’s price.
Do not overcomplicate things. When things are excessively complicated, even smart people get mixed up and confused. As Thoreau said, “Simplicity, simplicity, simplicity.” By keeping things simple, people can determine what worked for them and what did not.
Be smart, be well-read, be aware and be successful.
“Everything should be made as simple as possible, but not simpler. “
- Albert Einstein
