Nicolas Darvas wrote How I Made 2,000,000 in the Stock Market years ago. There are many good lessons in it. A very relevant quote from Darvas’ second book:
“My only sounds reason for buying a stock is that it is rising in price. If that is happening, no other reason is required. If that is not happening, no other reason is worth considering.”
Sound like trend following?
In Time magazine in 1959 Darvas, the one-time dancer, was quoted as saying:
– “In my dancing I know how to judge an audience. It is instinctive. The same way with the stock market. You have to find out what the public wants and go along with it. You can’t fight the tape, or the public.”
– “I have no ego in the stock market. If I make a mistake I admit it immediately and get out fast…If you could play roulette with the assurance that whenever you bet $100 you could get out for $98 if you lost your bet, wouldn’t you call that good odds?”
– “I never bought a stock at the low or sold one at the high in my life. I am satisfied to be along for most of the ride.”
– “I am only in infant industries where earnings could double or treble. The biggest factor in stock prices is the lure of future earnings. The dream of the future is what excites people, not the reality.”