The investor’s goal is to position capital so as to benefit from future development. The Key to accomplishing this goal is:
- To know where the pendulum of psychology and the cycle in valuation stand in their swings.
- To refuse to buy when too positive psychology and the willingness to assign too high valuations causes prices to soar to peak levels.
- To buy when downcast psychology and the desertion of valuation standards cause panicky investors to create bargains by selling despite the low prices that result.
