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URL:  https://boards.fool.com/youre-not-talking-to-a-wall-but-maybe-as-good-33577324.aspx

Subject:  Re: An Accounting Question Date:  12/10/2006  1:29 PM
Author:  JrnymanInvestor Number:  548 of 601

You're not talking to a wall. But maybe as good as if you were on this post, since I have no clue as to the answer to your question.

Thanks for the Odean link on your previous post, though, for research on how we individual investors hurt ourselves by trading too much in general and also how many seem to use the data available to them counterproductively. The report I looked through said that the investors they studied in the late 80's to mid 90's as a group both bought and sold stocks that were previous winners (had risen in price in the past 6 months). The stocks they bought on avg had been rising for 2 years previous to the purchase. The stocks they sold had been rising for about a year. The sad part being, that the stocks they sold kept going up after the sell. The stocks they bought went down after the purchase.

This all seems very generalized and perhaps also dated. So it's a little hard to feel like I should apply it to my own investing today. Still, it's sobering and lends more strength to the imperative to make an effort at assigning an intrinsic value to a company's stock as opposed to making decisions that give a lot of weight to trends in the stock price.


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