| In 1948 two shrewd investors purchased the same | | | | he knew he had a loss and the other didn't sell |
| stock at the same price and for the same reason. | | | | because he didn't know that he had a loss. |
| The next day one of the investors departed for a | | | | The point of this fable is that selling stocks that you |
| long awaited hunting trip to India. While the great | | | | have researched and believe in just because they |
| white hunter was bagging tigers in India his stock | | | | have fallen in price is a fool's game. |
| underwent a vicious 30% decline. The reason for the | | | | This fable is played out countless times every day in |
| decline has been lost in the mists of time, but some | | | | the stock market by people who have researched |
| people say it was because a stock analyst had issued | | | | and believe in their stocks. Until that is they decline |
| a negative report on the stock. | | | | 5%. Or 10% if they are very bold. They then panic. |
| The investor who had remained in New York | | | | Are blown out of their position and take a loss on a |
| panicked and sold his stock for a 30% loss. Of | | | | stock that they should have held on to. |
| course he managed to sell his stock at the exact | | | | Six months later the stock that they sold for a 10% |
| bottom. | | | | loss is now selling for a 40% profit. |
| Meanwhile, the great white hunter in India knew | | | | They will never learn. They will keep taking losses on |
| nothing about this; he was having a ball blazing away | | | | stocks that they were right about until they can't |
| at tigers. He was using a machine gun( in those days | | | | take the pain any longer. They will then drag their |
| they paid you a bounty for killing tigers) The bounty | | | | mangled bodies out of the Wall Street jungle never |
| on tigers was so much more profitable when you are | | | | to be heard of again. |
| using a machine gun. | | | | Wall Street is a place where you can be right and |
| More than three months later the great white hunter | | | | lose your shirt if you are not willing to stick to your |
| and his tiger skins returned to New York, and he | | | | guns. |
| discovered that his stock had by this time reversed | | | | Most investors are not willing to stick to their guns. |
| and was now up 50%. | | | | They are losers who could be winners if they only |
| Contemplate this well, the only distinction between | | | | believed in themselves. |
| these two shrewd investors is that one sold because | | | | |