MICHEL PIREU: What are the toughest lessons the market has to offer?
There are many difficult things that investors have to educate themselves about in order to deal with them effectively. • New things: Warren Buffett famously opined that when the car was invented, the sensible investment decision was not to buy shares in vehicle companies but to short horses; sometimes it is wise to pass on buying into major technological changes. The motor vehicle industry worldwide has managed to produce a profit only one year in five. The consolidated profit and loss account for the world’s vehicle manufacturing business shows chasmic losses since the car was invented. • Experts: Pundits’ opinions come with an undeserved air of authority. The mere fact that they are being interviewed or written about gives them a measure of credibility. If they have important-sounding credentials, can articulate a point of view and look convincing enough, we tend to believe them. Be careful about investing too much time listening to "experts" who face no consequences for being wr...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.