Why “Buy Low and Sell High” is so Difficult to Implement

By Cullen Roche at ORCAM Group

Warren Buffett once said: “investing is simple, but not easy”. Given his love of cheeseburgers and Diet Coke and also being 87 years old, he might not agree with this analogy, but I’ve compared investing to getting healthy. Being healthy is simple, but not easy. That is, we all know that you eat right and workout. That’s simple. But it’s really hard to avoid cheeseburgers while also maintaining a strict workout schedule.

Read on: Why “Buy Low and Sell High” is so Difficult to Implement

The Easy Pickings

The Easy Pickings

Posted March 20, 2018 by Michael Batnick

The Great Northern Expedition was one of the largest exploration endeavors in human history. The grueling state sponsored trip, which lasted ten long years (1733-1743) and covered thousands of miles, cost one-sixth the annual income of Russia.

During this campaign, the St.Peter, led by Danish cartographer Vitus Bering, was shipwrecked on what would later be known as Bering Island. With resources running low, the men set out to find food, which was relatively easy at first. In The Island of the Blue Foxes, Stephen Bown wrote:

The men would sneak up on sleeping or unsuspecting animals, pounce upon them, and club them…Soon the otters became attuned to this new predator, man, and became wary of approaching humans. The easy hunting of the early days soon became very challenging. The men had to organize nocturnal scouting expeditions even through ferocious and unpredictable snowstorms to get close enough to attack beached otters. Before the year was over, they had to hike four to six miles to get enough food, and by February 1742 they had to hike as far as twenty miles down the beach.

What once was easy turned into something quite difficult.

Continue reading full article at The Irrelevant Investor right here: The Easy Pickings

 

Value Investing And Why You Hate Cheap Things (podcast)

Dr. Crosby is one of my favorite writers and speakers on the subject of Behavioral Finance. This podcast is only 10 minutes long. I enjoyed it a lot and I think you will too.

Synopsis of this podcast episode: It’s counterintuitive, but a growing body of research suggests that you just don’t like cheap things. In this episode, we discuss how price as a proxy for quality can be in dangerous in investing and give clues as to how behavioral investors can sever this spurious connection.

iTunes podcast link: https://itunes.apple.com/us/podcast/wdidt-episode-6-value-investing-why-you-hate-cheap/id1241946146?i=1000389349159&mt=2

Player FM podcast link: https://player.fm/series/why-did-i-do-that/wdidt-episode-6-value-investing-and-why-you-hate-cheap-things