His approach to investing? “If you don't feel comfortable owning a stock for 10 years, you shouldn't own it for 10 minutes.” 4. This is why Warren Buffett always talks about “owning businesses” not “trading stocks”. If you understand the business behind the ticker, what they’re doing and how they make money, you’ll have an easier time weathering the ups and downs of market cycles. And that’s true I think of about 80% of people that own stocks. I am amazed at how many people own stocks, they would not be able to tell you why they own it… If you can’t explain to a 10-year-old in two minutes or less why you own a stock, you shouldn’t own it. The single most important thing to me in the stock market, for anyone, is to know what you own. Peter Lynch (manager of the Magellan Fund, author of “One Up on Wall Street”) wrote: However, stock prices move for a variety of reasons in the short term- not all of which make sense (just ask the meme stocks).
It’s tempting to look at stock tickers and try to catch a rising star. But the most powerful and important book should be called “Shut Up and Wait.” It’s just one page with a long-term chart of economic growth.” 3.
“There are books on economic cycles, trading strategies, and sector bets.
