1 First Canadian Place
|1) Understanding the psychology of the market
is often more important than understanding the economics
of the market.
2) The tough trade is most often the right trade.
3) Never, ever, average down.
4) Immediately sell a negative surprise, buy a positive surprise.
5) Fundamental analysis should be your scope, technical analysis should be your trigger.
6) Buying cash flow is investing, buying the prospect of it is gambling.
7) Be patient with winning positions, be extraordinarily impatient with losing positions.
8) Moderate debt levels can increase returns, excessive debt sinks companies.
9) "It’s different this time” is the most dangerous phrase in investing.
10) Markets are like elastic bands. The further they are stretched the more violently they snap back.