To be a Good Investor, Do You Need to be a Good Gambler?
While gambler's are synonymous with being broke, degenerate, and losers they are also something that may be an asset to being an investor - risk takers. When you look back and the past several years and you can actually do this with any given year (bull or bear market), there are always a group of a dozen or so stocks that are in the media but are risky. They are risky because the businesses are declining, the stocks have dropped in share price, or the future speaks of doom.
The following year, many of these dozen or so wildcards make huge % gains that crush any other 'safe' stock you could have owned. I'm not talking biotech. I'm not talking penny stocks. I'm not talking unknown businesses. I'm talking about the SIRI's, LVS's, AAPL's, and even last year's TSLA's that has made a huge run so far and even FB's recent run this past week.
These aren't junk companies. Even now you could arguably get in either a TSLA or FB or AAPL. But now you are not wondering if these companies will exist, you now wonder if the price you are buying it now is going to go up later or if you got suckered into buying yet another stock at its peak.
The real question you need to ask ignores all the ratios, financial data, and so-called experts that only highlight their correct picks while ignoring all their bad ones. The real question is will the price of the stock you buy now will EVER be higher at any other point in the future while you are still alive?
The other question is whether to be a good investor, do you need to be a good gambler?