Benjamin Graham said that the investor’s chief problem—and even his worst enemy—is likely to be himself. The most common investor problems result from poor influences, often ones related to emotion. Investing often involves a constant pull between logic and emotion. Thinking investors make mistakes, but reducing the influence of fear, greed, hope or jealousy in your investment decisions will significantly reduce your mistakes.
This book is for the investor who seeks to tilt his pendulum toward the rational approach.
After reviewing hundreds of my own trades over the years, I discovered that more than 65% of my unprofitable investments were the result of unforced errors. A handful of the ideas in this book are lessons I learned from observing the mistakes of others. Most of the ideas, however, resulted from the lessons of my own mistakes.
The subtitle of this collection, “David Moon’s proverbs for thinking investors” isn’t intended to suggest any biblical wisdom. The word “proverb” literally translates from the Latin word proverbium as “words put forward.” Each quote is culled from more than three decades of investing and notetaking. I put forward these words in hope they help you become a more thinking investor.
Also by David Moon: Thoughts Are Things.