How To Run Against The Wind For Good Stock Market Results
We were runnin against the wind
We were young and strong, we were runnin
Against the wind
Against the Wind is an emotional song and tells a story that’s easy to identify with.
And the stock market is an emotional place. Years worth of work, stored up in your savings, can up and vanish in the wind in a heartbeat’s time.
If you do the wrong thing when the wind comes, those savings can permanently disappear.
So you better be ready.
In the market you either run into the wind (contrarian / value investing), strap on a hang glider to float with it (index fund investing), or try to outrun it and inevitably get blown over.
If you want to do better than the stock market, you’ve got to run against the wind.
How to run against the wind
The key to running against the wind is simple: You’ve got to feel differently than everyone else, and do what everyone else won’t.
While everybody is scared and running away from the wind, you’ve got to be brave, excited even, and run straight into it.
Search for the bargains that bad times inevitably bring. Learn the lessons of value investing well. Find out where the true values lie and avoid falling into value traps.
Don’t be afraid to sell stocks that have losses when you can change them for ones that are a much better value.
Then, when the storm has passed, you’ll be sitting pretty.
But never stop running against the wind. I know I won’t. And I hope you come along on that journey, too.