Investing Advice from 1937, Still Relevant Today
Novel Investor
Just before the 1937 market crash, Fred C. Kelly wrote a well-timed column sharing behavioral investing advice that’s still relevant today.
Human nature is much the same wherever found. Hence it always responds to the same kind of stimuli. Some people require a little more prodding than others do before they will move. But in a general way if you knew all the different kinds of stimuli brought to bear on a certain average group, you could tell just what they would do.
If you re a normal, average person, then you are a member of the largest group on earth and are likely to buy and sell when the rest of this group does.
Market success depends partly on an ability to distrust one’s natural impulses and go contrary to them. We must be cautious and fearful at the very time we are inclined to feel most hopeful — and to show courage when scared. It is fatal to follow the crowd blindly, for the crowd is almost sure to be wrong.
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