You have to have discipline. You have to be consistent in your reading, analysing, in doing your homework everyday. But then there’s something you have to deal with that I don’t know if it’s teachable, if it is talent or what. You feel it’s time to swing, the business you want to buy shares of, or you want to buy into seems excellent from a value standpoint. You did what you had to do but it’s time to test your temperament, your emotions. It’s time to spend the money and you are not going to use the eyedropper. It’s time to test if you are really wired to stick with the fundamentals and the facts upon which you based your reasoning. It’s time to test if you are going to sleep well with your investment because you know that your reasoning was right even if all other investors or funds or analysts said otherwise.
Sir John Templeton used to say that the lowest price of a stock could easily be when this particular stock is not only out of fashion among the crowd but when rumors that it will go worse in the future are thrown around. Are you ready like us to be greedy when other are fearful? Ready to feel sincerely good when the Dow is down?
September is a special month for many reasons worldwide. It’s kind of a re-start. It was a wonderful month for me in 1987 (I was actually 11 year old and starting a new chapter of my life at a new school with extraordinary kids that I still count as friends). It was a great time to buy stocks too if only I had the money back then… So lets celebrate and keep our september spirit up. I’m confident that if it’s true that some people are really out of tune about the market and they shouldn’t buy stocks, many others can improve also their temperamental qualities over the long run. If so, the improvements in every aspect of life and in the lives of others will be wonderful. That’s what “blikebuffett” means, more than money to be made.