This crazy market we see today is nothing new. Speculations, euphoria, hype, "prodigy" investors.... It has happened and will continue to happen for as long as the stock markets exist.
However, no matter the market conditions, the fundamentals and logic behind investing should not change. Here is a little quote from the timeless "the intelligent investor" book.
An investor calculates what a stock is worth, based on the value of its businesses. A speculator gambles that a stock will go up in price because somebody else will pay even more for it. As Graham once put it, investors judge “the market price by established standards of value,” while speculators “base [their] standards of value upon the market price.” For a speculator, the incessant stream of stock quotes is like oxygen; cut it off and he dies. For an investor, what Graham called “quotational” values matter much less. Graham urges you to invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.
To all fellow investors, have fun and invest smartly.
Submitted January 25, 2021 at 11:43PM by hello-jacob https://ift.tt/2KMcgFI
