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Tag Archives: Jack Welch

You Don’t Need to Predict The Future

This is a guest post from Troy at The Financial Economist. If you’d like to guest post, please contact me.  Yes, you did read the title correctly. In order to make profitable investments, you do not need to predict the future. I understand that at this point, what I’m saying doesn’t make much sense. Let me elaborate. Most investors are accustomed to predicting the future of the stock market – where will it be in the next 3 months, 6 months, 1 year, etc. They do “research” online, and come up with all these predictions backed up with fancy data. However, I prefer to invest differently. I’m not a very smart guy – I literally spent a year preparing for my SAT’s, just to get a meager 1490 (considering the effort v. reward ratio, my score was disappointing). Hence, my brainpower (or lack of) doesn’t let me predict the future like all those Harvard MBA analysts on Wall Street can. My investment style is simple and straightforward: instead of predicting what the economy will be like in the next 3 months or 6 months, I just recognize the fundamentals when they appear. Now you’re probably asking “How does simply recognizing ...

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