Neuberger's rules Michel Pireu     | Business Day Thursday, April 4, 2019
From Roy Neuberger in The Investor’s Anthology by Charles Ellis:

Rule #1: Be flexible. My philosophy has necessarily changed from time to time because of events and because of mistakes. My views change as economic, political and technological changes occur both on and now off our planet. It is imperative that you be willing to change your thoughts to meet new conditions.

Rule #2: Take your temperament into account. Recognise whether you are by nature very speculative or just the opposite: Fearful – timid of taking risks. But in any event –

Rule #3: Be broad gauged. Diversify your investments, make sure that some of your principal is kept safe, and try to increase your income as well as your capital.

Rule #4: Always remember there are many ways to skin a cat! Ben Graham did it understanding basic values, Ben Smith did it by knowing when and how to sell short, T Rowe Price appreciated the importance of the growth of new industries; each was successful in his own way. But to be successful remember to A. dig for yourself. B. Be from Missouri. (As legend would have it, they take a stubborn pride in being sceptical, not accepting an assertion without visible proof.) C. There’s sucker born every minute.

Don’t underestimate the importance of psychology in the stock market. When people buy they are more anxious to buy than the seller, and vice versa. So many things go into a buy or sell decision besides economic statistics or security analysis. A bad (or good) buy or sell decision may be made merely because of a headache.

I like to be contrary. When things look awful, I become optimistic. When the crowd and the world looks most rosy, I become a seller, perhaps prematurely, but usually profitably…

There seem always to have been fads in Wall Street. But fads come and go.
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