The Secret to Investing Has Been Out For 50 Years

26.05.2016 • Investing

From The Price Report (AUSTRALIA) –

The title of fund manager Richard Oldfield’s book is Simple But Not Easy. In his appendix to The Intelligent Investor, published in 1984, Warren Buffett wrote:

“… the secret has been out for 50 years [ever since Ben Graham first published Security Analysis and then followed up with The Intelligent Investor], yet I have seen no trend toward value investing in the 35 years that I’ve practised it. There seems to be some perverse human characteristic that likes to make easy things difficult.”

And the multi-millionaire trader Richard Dennis once remarked: “I always say that you could publish trading rules in the newspaper and no one would follow them.”

Whether you’re a value investor like Ben Graham or Richard Oldfield, or a trend-following trader like Richard Dennis, sound investment principles aren’t difficult to understand – just difficult to implement. As the value manager Peter Cundill once wrote: “The most important attribute for success in value investing is patience, patience, and more patience. The majority of investors do not possess this characteristic.”

The fault is not in our stars but in ourselves. Most people are simply too impatient to follow tried and tested pathways to long-term investment success. Making a quick buck is often far too alluring. This is ironic, given that practically all of us are investing for the long term…

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