Thursday, March 16, 2006

Outsmarters and Partakers

"There are two kinds of investor: Outsmarters and Partakers".

"Outsmarters believe they're so clever they can beat the system,through inside advice and superior brainpower."

"Partakers understandthat the best way to make money is to share in the profits ofsuccessful businesses, by buying stock in [them]... "

"There are, for example, the day traders, who think they can profit from tiny ups and downs of stocks over minutes or hours. I do not doubt that some people can make a profit this way....But beyond a tiny cadreof the super-talented and super-dedicated, day traders get eaten up bythe transaction costs -- the commissions, the spreads between bid andasked prices, and the interest incurred in buying stocks on margin." -- James K. Glassman, "The Secret Code of the Superior Investor," pp.63-64.

1 comment:

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