That's what Warren Buffet says also something like "Never take a loss" Do you know what an INVESTISSOR FRAMEWORK IS ? In an investissor framework they just accept to lose 100% on a position so they don't do any leverage and don't put their capital on one egg. It is not a SPECULATOR FRAMEWORK you would sure be killed by doing the same thing ! The fundation of an investissor framework is based on minimal value that is to say they are sure that the price of the stock is at least worth the real value of the firm. So in their mind they are sure that at long term the price will never stay under their buying price. Of course they can wait very long that's why they are investissors . They also can make a judgement error but if they take precautions it is rarely the case, and if it is the case as I said they expect to lose 100% on the stock. Whereas in a speculator framework you don't bother with value and don't want to support staying a long time with the same stock.
How much is a 1% move in 3 years annualized? Mr. Buffett is a supreme evaluator of companies. You sir, are no Warren Buffett.
If to be an investissor everyone must be Warren Buffet there would be no investissors at all There are more investissors that are winners than speculators because time is the real power in stock market. That's why speculators are in fact killed with time. Those that have the patience and the money to wait benefits from time compounding. Of course I talk about real investissors those who have a real methodology of selecting stock and evaluating it with value criterias and not the hype criterias presented by the big brokers to the mass public investissors. And if you think that the fortune of Buffet comes from the market, it above all comes from his assurance company. Assurance Company, unlike banks, have more "investissor" profile than banks and so their assets grow slowly but surely with time. I would be an investissor if I hadn't found my super mumbo jumbo in speculation. I have studied valuation in petroleum finance domain but it can be applied to any field. The problem is to get datas that are not distorted by analysts-sellers. When I will be old I'm sure I will turn to be an investissor rather than a speculator. In fact when you reach a real fortune of mega millions speculation will become difficult because of liquidity you have no choice than invest instead of speculating.
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BTW I forget to ask : Does anyone know of a site which translates Arab and Israeli language into english ? freealways