Thursday, October 25, 2007
How do you sit and do nothing?
One of the keys to making money as a value investor is to not be afraid to just sit and do nothing. It's boring. It's hard. It's not remotely sexy. Especially in our age of online trading, it's so easy to update your positions or net worth every minute. It's incredibly easy to hear some bad news on Bloomberg TV, CNBC, or Fox Business News, get frustrated and make a dumb move. So how do you avoid this? Turn off the TV. Don't read message boards. Restrict the amount of sources that you read. Avoid information overload. Don't check your stocks every day. Take the broker off speed-dial. Get away from the market regularly and get some perspective.