PTY - Important: Don't Make These 3 Mistakes When Reading Charts
2024-05-27 07:45:00 ET
Summary
- Investors are overly reliant on price charts.
- Past returns do not guarantee future results, and the best time to buy is when prices are low.
- You want to own companies that will produce and share profits.
Co-authored with Beyond Saving
One thing I have learned over the years is that people love their charts. They will spend hundreds of hours staring at charts, trying to determine which patterns they can discern and attempt to define the future.
That isn't me. Frankly, the whole exercise strikes me as a Rube Goldberg machine. Cartoonist Rube Goldberg was known to illustrate incredibly complex machines, where a simple task like flipping a switch is carried out through a long series of chain reactions....
Important: Don't Make These 3 Mistakes When Reading Charts