Comment by sir-draknor on 08/12/2017 at 22:59 UTC

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View submission: Don't invest recklessly

I've always interpreted it to mean - "don't invest based on emotion (& following the market swings), invest based on rational evaluation of price to value".

Which means - don't invest in Pets.com in 1999 just because it's the Dot Com boom and everyone's throwing money at anything "on the internet".

It also means - invest in well-run banks, newspapers and railroads that have good business fundamentals, but that everyone's running away from because they are so "last century".

In my opinion...

It doesn't mean that someone can't make money following the crowd. *Because plenty of people did make a lot of money in the dot com boom*

Or that old-school industries is the **absolute** best place

to put your investments for growth. *Because Bank of America, Lee Enterprises, and BNSF Railway aren't going to produce explosive growth*

Just that this method should provide you a steady, relatively safe portfolio that should let you sleep well at night.

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