“Buying a cyclical after several years of record earnings and when the P/E ratio has hit a low point is a proven method for losing half of your money in a short period of time”
--- Peter Lynch
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@CharlieMunger00
Sometimes more than half. A lot more.
Then with some luck you break even in 10 years.
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@CharlieMunger00
but not as bad as buying a speculative stock with no earnings that will lose 90% of value, and then go bankrupt, or dilute shares.
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@CharlieMunger00
Conversely…“Buying a cyclical after years of depressed earnings and industry consolidation is a proven method for tripling your money in a short period of time.”
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@CharlieMunger00
I see where I'm going wrong with this investing stuff: it's the hairstyle - I have the wrong one 😬
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@CharlieMunger00
Totally agree...observe the earning pattern of co.altelest 5-6 quarter prior before buying cyclicals
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