Quote: (01-09-2013 04:53 PM)1Minute Wrote:
Did you get the 1974 or the 2003 edition? The '03 edition has the editor of CNN Money comment on the dot-com bubble and how Graham's value investing would have predicted the burst. I used to fully believe in 'buy and hold', but analyze Apple (my most heavily weighted stock) using his standards. It's a steal, but the price stays as low as it is even though they have tons of cash and earnings keep growing so I'm losing faith in it.
Now I follow what Mark Cuban says, where it's better to have a ton of cash lying around so if see an opportunity, you can jump on it the second you think it's right. Over night you might lose a little to fluctuation (that's why you keep it in USD, HKD, GBP, EUR, CHF, SEK) so they more or less equalize) but you can jump on any quick movements. Market drops 10 in a day%? Buy in. An emotional drop in an otherwise strong company (tylenol poisonings a few years back), make a quick 10-15% in a month or two. That's my point of view, but I'd like to hear what someone with 15, 20, 30 years of investing would have to say.
That's a safe strategy, but you are missing out on future dividends if your holdings are in cash. You can also miss out on a potential upswing in the market.