“Marriage is the triumph of imagination over intelligence. Second marriage is the triumph of hope over experience.” -Oscar Wilde
Substitute “investing during a mania” for “marriage” in the quote above and you’ll understand what is going on in the stock market today. To wit, in 1999, Warren Buffett famously told a select group of wealthy individuals at a confab in Sun Valley:
Investors in stocks these days are expecting far too much, and I’m going to explain why… A Paine Webber and Gallup Organization survey released in July shows that the least experienced investors–those who have invested for less than five years–expect annual returns over the next ten years of 22.6%. Even those who have invested for more than 20 years are expecting 12.9%. Now, I’d like to argue that we can’t come even remotely close to that 12.9%.
Surge Appoints New Strategic Advisor, Mr Chip Richardson from Wedbush Securities
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The Triumph Of Hope Over Experience
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