![]() ![]() ![]() Emotional control or emotional intelligence is of the essence. This difference between the two types of traders brings us to the second point. ![]() Emotional control versus business insight It should not be something only maintained in the short run. ![]() There should be a projection that the company’s earnings will be maintained over the years. It is important to look at the p/e-ratio and to make sure that the financial position is strong. This part should never go above 10% of the total assets.Ī stock should furthermore not be bought just because it is close to its asset value. He is also aware of that the future long term performance is decided by the actual business behind the stock.Īn investor can choose to allocate some of his capital into speculative equities. The investor looks for stable companies with a long record of profitable operations and good balance sheets. But the goal of the investor is instead to hold securities at suitable prices. The speculator tries to anticipate such fluctuations in the market. The investor sees the stock as an actual part of a business and not just a fluctuating value. The main aspect to keep in mind is the difference between investment and speculation. 6 Final words regarding this review of The Intelligent Investor… Investment versus speculation ![]()
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