Losing it all
“ It is of course possible to get lucky with a few correct calls , but it ’ s not a strategy that will pay off in the long run ”
Eric Burns Chief analyst at Sanford DeLand
“ We also shun asset-heavy businesses with consistent requirements for capital to keep growing – for us these would constitute bargepole stocks .” Yet while this has proved to be a successful strategy for Sanford DeLand ’ s funds , such as CFP SDL UK Buffettology , Burns wasn ’ t particularly surprised by the surge in interest in Russia in February . He says many investors treat the stock market like a casino , “ trying to make a quick buck from how they think share prices might react to certain macro events ”.
“ In my 25 years in the business , the market ’ s ability to make a fool of soothsayers has never disappointed ,” he continues . “ I would argue the approach of trying to profit from short-term themes falls under the heading of speculation rather than investment . It is of course possible to get lucky with a few correct calls , but it ’ s not a strategy that will pay off in the long run . As American financier and statesman Bernard Baruch put it : ‘ Don ’ t try to buy at the bottom and sell at the top . It can ’ t be done , except by liars .’”
Issue 83 - April 2022 / 17 /