UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: Spyneyes Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 7258  
Subject: Follow the Preachers or the Masters? Date: 9/5/2001 5:31 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 6
There are many among us on these message boards who will preach that to buy and hold good companies, and purchasing more, despite the direction of the market, is "ridiculious." Going in and out of cash, waiting for that "clear signal" is the way to go, some say. Others even go so far as to say it's "stupid" But is it really?

Certainly not to the way of thinking of some of the most successful investors of our time. Names like Lynch and Buffett come to mind. Other, not so famous names, like Anne Scheiber also come to mind. Now here's somebody we can all relate to. She was a woman of modest means, who wasn't a gambler, nor were her investing methods remarkable. She was the complete opposite of the trader.

Scheiber invested long-term in the market, becoming a part-owner in a handful of some of the best-known businesses. She bought stock in companies like Coca Cola, and Pfizer. She ignored the headlines and exercised patience, despite seeing her substantial portfolio lose half it's value, not once, but twice in 1972 and 1974. In other years she nearly doubled her money.

After fifty years (50), while adding to her "savings" consistently, and employing what Baron Rothschild described as the eighth wonder of the world, compound interest, she died in 1995 leaving all her $22-million to a New York University.

(For more on Anne Scheiber see Tom and David Gardner's book You Have More Than You Think." Her story is found in the Introduction.)

"As mastery is our end, let us begin by studying the best. If you'd like to be the best softball hitter in your neighborhood, watch how Ted Williams flung his bat at a pitched baseball. If you want to be a filmaker, Hitchcock's numerous classics await you at the corner store --why not start there? Today's great pianists grew up playing Chopin, Mozart, Brahms and Beethoven for years. Fools that we are, we propose that this is the exact approach to take your money." -- You Have More Than You Think - David and Tom Gardner

If it's mastery you look for, who best to follow? The one's who preach as if they really know what's best or label as "ridiculous?" Or those who have actually performed?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Starting a Club
Learn how to start and run your own club, the Motley Fool way!
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement