INVESTING PRIMER

Economics growth chart

Economics

Psychology

Psychology

Price tag

Price

value for a house

Value

Knowing what [effect] is happening in your investment program is not as important as knowing why [cause] it is happening. 

History tells us that markets are driven by emotions (psychology) in the short term and economics in the long term, and that most market participants pay more attention to prices than they do to values.  

‘Why?’ is the question that guides success.

Speculators are price driven

Speculators are price-driven

Investors are value and growth-drive

Investors are value and growth-driven

We commonly use the teachings of history’s best investors in our decision-making.

Ben Graham
Value investing pioneer

In the short run, the stock market is a voting machine [popularity], but in the long run it is a weighing machine [economics].

Phil Fisher
Growth investing pioneer

Invest in businesses that have disciplined plans for achieving dramatic long-range growth.

Warren Buffett
Graham and Fisher’s protege

Time is the friend of the wonderful business, the enemy of the mediocre one.

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Red Pine Tree

Our goal is to own the best businesses and the mutual funds that own the best businesses.