Cable and Wireless would have to be the investment where I had my head handed to me. To paint the picture, the dot-com bubble was over and the share price was plummeting. Market sentiment was against this company in particular, as well as the telecoms sector in general, so I started to get interested. My history has always been in buying securities when they’re unpopular. However, Cable and Wireless is an illustration of the fact that despite careful analysis and a strict adherence to Benjamin Graham’s value principles—a low share price, no debt, a huge amount of cash and profitable established networks— things can still go wrong, spectacularly so.
Any advice for regular investors? Pick some first-rate money managers with whom you feel comfortable because you have done your homework on them. Then stick with them. The mantra is patience, patience and more patience. Think long-term and remember that the big rewards accrue with compound annual rates of return - How to think long term?
Any advice for regular investors? Pick some first-rate money managers with whom you feel comfortable because you have done your homework on them. Then stick with them. The mantra is patience, patience and more patience. Think long-term and remember that the big rewards accrue with compound annual rates of return - How to think long term?
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