No one likes to be wrong, but making mistakes is one of the things that makes us human

Intelligent Investor

Independent Financial Research

No one likes to be wrong, but making mistakes is one of the things that makes us human. One of the great things about errors in investing is the opportunity they offer for improvement. Every investor makes mistakes. Consider BlueScope Steel. Between 2002 and 2008, a period over which the stock rose fourfold thanks to the 'stronger for longer' mining boom, Intelligent Investor Share Advisor was unambiguously negative on it. Seven years of being 'wrong-er for longer' might seem damning but eventually BlueScope's share price tumbled 93%, precisely because of the fundamental problems we highlighted during the boom. Nice as it may have been to ride the stock up and sell at the top, it was impossible to say when those problems would come to the fore. The best course was to avoid the stock entirely - which meant being wrong for a while before being right. BlueScope and countless other recommendations show that adverse share price moves in the short to medium term are commonplace. In fact, you should expect to get your timing wrong. (VIEW LINK)


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Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

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