On buying and Selling
“Historically, you buy stocks when they're yielding 6% and selling at eight times earnings. You sell them when they're at 22 times earnings and yielding 2%”
On Government GDP numbers
“I do not pay attention to that sort of thing for the following reasons:
From my experience in the past I have learnt that any forecast especially by government agencies should be taken with a pinch of salt because they are wrong most of the time.
On Industry bottom
When there are a number of bankruptcies in the industry “bankruptcy is a sign of bottom not the top”
On getting Rich
"Take your money; put it in Treasury bills or a money-market fund. Just sit back, go to the beach, go to the movies, play checkers, do whatever you want to. Then something will come along where you know its right. Take all your money out of the money-market fund, put it in whatever it happens to be and stay with it for three or four or five or 10 years, whatever it is.
You'll know when to sell again, because you'll know more about it than anybody else. Take your money out, put it back in the money-market fund, and wait for the next thing to come along. When it does, you'll make a whole lot of money."
On diversification
“Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket."
“Historically, you buy stocks when they're yielding 6% and selling at eight times earnings. You sell them when they're at 22 times earnings and yielding 2%”
On Government GDP numbers
“I do not pay attention to that sort of thing for the following reasons:
- They are always revised;
- Every government has different methodologies; and,
- Most governments have no clue so they just make up the numbers.
- The numbers are backward looking;”
From my experience in the past I have learnt that any forecast especially by government agencies should be taken with a pinch of salt because they are wrong most of the time.
On Industry bottom
When there are a number of bankruptcies in the industry “bankruptcy is a sign of bottom not the top”
On getting Rich
"Take your money; put it in Treasury bills or a money-market fund. Just sit back, go to the beach, go to the movies, play checkers, do whatever you want to. Then something will come along where you know its right. Take all your money out of the money-market fund, put it in whatever it happens to be and stay with it for three or four or five or 10 years, whatever it is.
You'll know when to sell again, because you'll know more about it than anybody else. Take your money out, put it back in the money-market fund, and wait for the next thing to come along. When it does, you'll make a whole lot of money."
On diversification
“Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket."