Continuing on Frustration

In the earlier blog posting Frustration, Persistance & Stubborness I wrote the following:

For me, there is no way I could tell whether a stock is gonna go up or down. It is mere impossible for me to figure out which way the stock is really going to go. Haven't we seen them bad to the bone, them rotten stocks, them almost bankrupt stocks, go up via cosmic movements? It does happen but for me, trying to catch which and when these rotten stocks will go up is the equivalent of buying a lottery ticket. I simply cannot do it. Again, let me say out loud again, I am not saying that it cannot be done, all I am saying is that I realise I do have the abilities to play such a game.

And in my opinion, for the investor, the most important issue is making clear logical reasonings to invest in a stock or to stay invested or to cash out of a stock investment. That's the investors edge. Making commonsense investing decisions. That's all that matters. If we take this edge away from ourselves, what then will become of we? Does it make sense to try to play a game that we don't understand too well just so long as we can be a hero? Remember.. Without faith in his own judgement no man can go very far in this game! - - Lefevre

In Buffett Partnership letters (July, 1966) there was this really little set of comments which is simply much, much, much better! (Aiyah.. he's the man, Warren Buffet mah!)

"The course of the stock market will largely determine... when we'll be right, but the accuracy of our analysis will determine whether we'll be right. In other words, we... concentrate on what should happen, not when it should happen... If we start deciding, based on our guesses or emotions, whether we will... participate in a business where we... have some long-run edge, we're in trouble. We will not sell our interests in businesses when they are attractively priced just because some astrologer thinks the quotations may go lower even though forecasts... will be right some of the time... The availability of a quotation for your busines interests should always be an asset tobe utlized if desired. If it gets silly enough in either direction, you will take advantage of it. Its availability should never be turned into a liability whereby its periodic aberrations in turn form your judgements."