“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves” -Peter Lynch.
Every 2nd day i end up having a conversation about global market, as much as i love these conversations they don’t help me create wealth.
Every 3-6 Months there is a New Global Event happening which can have catastrophic outcomes, i cant remember any 6 month period where the world wasn’t supposed to come to an end if that happened.
On Friday we Successfully proved to you that in the long term Earnings Growth = Stock Returns.
Lets look a few historical Events that were supposed to mean an end to Financial system.
I am not denying that there was no Risk in these events, the problem is there are very few in this World who can predict these events and even fewer who can do it consistently. To make money you need Luck, to create wealth you need consistency.
We at Stallion Asset have taken the easier way, we look at companies which can double their Profits in 2-3 years i.e. growing at 25-35% and have high return of capital employed.
We only Invest in 3 sectors in any given cycle, WE CATCH THE TREND AND MANAGE OUR RISK.
Conclusion – As Charlie Munger says – It’s remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent. There must be some wisdom in the folk saying, “It’s the strong swimmers who drown.” We as Investors, need to know what we know, and what we don’t know. I am at best mediocre at macro predictions, but believe me so is the Worlds Richest Investor Warren Buffet.