Buying a Stock Is Buying a Company
I am just finishing the new biography of Ben Graham, The Einstein of Money by Joe Carlen, and I have to say it is a pretty good read. One point that the author really brings home is Graham's belief, later adopted by Warren Buffett and other successful value investors, is that we should look at a stock as if we are buying the entire company.
All too often today, stocks are viewed as just an electronic bet on the popularity of a particular company or sector or the overall market. The average holding period for many investors is a period of days or even hours, and such pure speculation is a difficult enterprise for individual investors who compete against doctors of physics and statistics armed with supercomputers....664 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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