Advice from David Einhorn
David Einhorn has always been one of my favorite investors. Because of the recent insider-trading issue, we have access to a call he made with a CEO. Anytime you get to pick someone's brain or get access o how someone thinks about it, I think it's pretty valuable. Here is the transcript: http://www.insidermonkey.com/blog/2012/02/16/transcript-of-david-einhorns-phone-call-with-punch-ceo-insider-trading/
My favorite part-- and the thing I am going to really think about and focus on, is the section where he says "my advice to you is, don’t let the market dictate to you. You figure out what you think it’s worth, and then use the market as a opportunity to create value"
Althought this was in a slightly different context, I think the point still remains for an individual investor. How often have you allowed the gyrations of the market to affect your conviction? I know I am guilty of this at times.
My goal is to really focus on that piece of advice. Do my own research, calculate estimated intrinsic value, and DONT LET THE MARKET DICTATE TO YOU.