Why Investors have to Adopt New Tactics From Time to Time

investor strategiesAccording to investing pioneer Sir John Templeton, “The four most dangerous words in investing are: ‘this time it’s different.’” His admonishment, often quoted and treated as divinely inspired, refers to investors’ belief that the measurement of value changes in a fundamental way over time.

Although Templeton’s essential point to invest in value rather than respond to trends or innuendo is sound, I much prefer the advice from another legendary investor, Benjamin Graham, who takes the concept one step further: “The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.”

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This article has 8 Comments

  1. Johathan Muldoon

    Have to agree. Why? I was one of these types. And in many ways i do catch myself panic and jump on new trends rather than study up on their underlying values and management teams.

  2. Angel Durbin

    How's the real estate field going in Canada? Still worth investing in?

  3. Jaydin

    It's all about risk tollerace. The younger you are the more you should take bigger risk in growth stocks. The reverse is true when older and/or have a famiyl (look to income stocks and blue chips).

  4. Quincy

    Hey there is always managed investing like Questrade Portfolio IQ. That way you dont have to be focusing all your time or anything. Just a thought.

  5. Bronwyn B

    I got a bit upset by the original articles mentiont aht bond investors face ridiculously low yields.

    Uhh, not all bonds are low. This article makes the poor assumption that bonds are never good for a portfolio. Ridiculous.

  6. Esteban

    This fails to understand the social pressure of it all. A few years back emerging stocks were big and everyone including the house dog was putting in their money.

    How does one combat that feeling of being left out?

  7. Darin

    The strategy never chages: Diversify your holdings and you will never go wrong.

    Sure there will be spells when you may lose 20% or more but its the longterm that counts.

  8. Steve C

    Not everyone is a investor pioneer and therefore spend their waking hours staring into #s. This is why mutual funds are big biz. The hope is that these managers know what they are doing.

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