Friday, January 09, 1998
On Foolishness and
Cliches
By Patrick Chylinski
([email protected])
You know, when it comes right down to it, this whole Foolishness thing is just a cliche.
Foolishness is about breaking free from debt, setting realistic long-term investment goals, and putting your investment dollars to work in the stock of companies with solid growth potential. I suppose the idea that individual investors should think for themselves and not rely on overpaid Wall Street investment "professionals" and fund managers is supposed to be empowering. (Knowledge is power.)
Discarding the notion that anyone can accurately or consistently time the market, Fools often use the phrase "the best time to invest is now." They focus on the idea that there is no better place for long-term investment dollars than the stock market, and that there is no better time to invest than the present. I guess it’s pretty simple: if you want to make money in the stock market, you have to have money invested in the stock market, and you should start as soon as possible. (There is no time like the present.)
Fools tend to have a long-term approach to investing because they realize what a powerful combination time and compounded growth can be. Rather than get caught up in the daily, weekly, or even monthly ups and downs of the market, they give their well-researched investments in market-beating companies time to grow. And much to the chagrin of high-commission, full-service brokers, Fools prefer to use low-commission discount brokerages to implement their buy-and-hold strategy. (Patience is a virtue.)
Fools remember the dark days before computers, before the Fool, when company conference calls were closely guarded secrets available only to Wall Street analysts. But oh how times have changed. Individual investors can now go online and freely exchange information with others just as eager to learn. And the online community is growing rapidly, as Fools spread the word to fools. And why not? If you were still in the dark, and hadn’t yet stumbled across the Fool, wouldn’t you want a friend or family member to tell you about it? (Do unto others as you’d have them do unto you.)
Finally, Fools realize that investing is only a small part of life. Very important, but small. Good health and relationships with family and friends are most important in life. So make an effort to eat better and exercise more. Call a friend you haven’t spoken to in a long time. Tell your kids they can do anything they set their minds to. And when you get home tonight, spin your wife around, tell her you love her, and give her a big kiss. When you feel your heart beat a little faster, you’ll know you’re alive. (The best things in life are free.)
Yep. Foolishness is just a cliche, but maybe that’s not such a bad thing after all.
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