Your Ultimate Success Or Failure Will Depend

Often, There Is No Correlation Between The Success Of A Company's Operations And The Success Of Its Stock Over A Few Months Or Even A Few Years. In The Long Term, There Is A 100 Percent Correlation Between The Success Of The Company And The Success Of Its Stock. This Disparity Is The Key To Making Money; It Pays To Be Patient, And To Own Successful Companies.

When Management Owns Stock, Then Rewarding The Shareholders Becomes A First Priority, Whereas When Management Simply Collects A Paycheck, Then Increasing Salaries Becomes A First Priority.

There Is Always Something To Worry About. Avoid Weekend Thinking And Ignoring The Latest Dire Predictions Of The Newscasters. Sell A Stock Because The Company's Fundamentals Deteriorate, Not Because The Sky Is Falling.

There's No Shame In Losing Money On A Stock. Everybody Does It. What Is Shameful Is To Hold On To A Stock, Or Worse, To Buy More Of It When The Fundamentals Are Deteriorating.

That's Not To Say There's No Such Thing As An Overvalued Market, But There's No Point Worrying About It.