![]() ![]() It has nothing to do with intrinsic value or discounted cash flow. The average holding period for a stock on the New York Stock Exchange is 11 months! Over 11 months your return is just a function of price changes. Because so many investors end up confusing noise with news, and trying to out-smart each other, they end up with ridiculously short time horizons. Many investors seem to end up trying to perform on very short time horizons and overtrade as a consequence. One of the observations he makes is with regards to a short time horizon which results in overtrading. Here are three common mistakes explained by renowned investors from across the globe.Īlmost a decade ago, James Montier penned Seven Sins of Fund Management, a behavioural critique. Don't panic and sell when the markets fall or get into the market only when it is on a run.
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